Financial stocks gain as 2 year-10 year Treasury yield spread widens

|By:, SA News Editor

Financials gain as the spread between the 2-year and 10-year Treasury yields widens to 34 basis points from 24 bps five days ago.

10-year Treasury fell, boosting yield about 6 basis points to almost 2.96%, while the 2-year's decline improved its yield by almost 3 basis points to 2.62%.

S&P Financial Sector Index gains 1.4% in early afternoon trading to 463.81; the index has risen 4.2% in the past month, but about flat year-to-date.

Among the big banks, JPMorgan Chase (JPM +2.5%) shows the most improvement, followed by Wells Fargo (WFC +2.3%) and Bank of America (BAC +2.1%).

Biggest movers among the regionals are SunTrust (STI +2.4%), Fifth Third Bancorp (FITB +2.2%), and Regions Financial (RF +2%).

Brighthouse Financial (BHF +3.9%) leads life insurers; while Aflac (AFL +1.2%) heads up property and casualty insurers.

Previously: Dollar index slips as Trump keeps up criticism on Fed's interest rate hikes (July 20)

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