Big day for financials as rates break out

|By:, SA News Editor

The major average are modestly lower, but the broad financial sector (XLF +1.2%) - led by the banks (KRE +2.4%), (KBE +2.4%) - is sharply higher as the bond bear market gains steam.

The 10-year Treasury yield rose as up to 2.60% earlier today - the highest rate since just after the 2016 presidential election. This came as the two-year yield held essentially flat, meaning a widening yield curve, and boosted margins for lenders.

Strongest among the banks today are the regional players: Regions Financial (RF +2.6%), New York Community (NYCB +5.2%), KeyCorp (KEY +2.5%), BB&T (BBT +2.3%), BofI Holdings (BOFI +4.1%), Huntington Bancshares (HBAN +2.8%).

Life insurers: MetLife (MET +2.5%), Prudential (PRU +3.1%). Too big to fails: Bank of America (BAC +1.4%), Morgan Stanley (MS +2.2%), Wells Fargo (WFC +1.8%).

ETFs: XLF, FAS, FAZ, KRE, VFH, KBE, UYG, FNCL, IYF, BTO, IAT, IYG, KBWB, RYF, QABA, KBWR, FXO, SEF, FINU, DPST, RWW, FINZ, WDRW, JHMF, FAZZ, FTXO, FNCF

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