Buying panic in bonds sinks banks

|About: Bank of America Corporation (BAC)|By:, SA News Editor

Behind today's big move down in bond yields was a plunge in the German PMI to its weakest level since 2012. That sent the German 10-year Bund yield down into negative territory.

Alongside, the U.S. 10-year Treasury yield is off more than nine basis points to 2.44% - its lowest print in more than two years. That pretty much makes the U.S. yield curve flat (the 2-year is at 2.34%, and the Fed Funds target is 2.25%-2.5%). TLT +1.35%, TBT -2.7%

While the major U.S. averages are down about 1%, the financial sector (XLF -2.3%) is being hit way harder. The SPDR Regional Banking ETF (KRE -3.4%), The SPDR Bank ETF (KBE -3.3%).

Individual players: Bank of America (BAC -3.6%), Morgan Stanley (MS -3.3%), Wells Fargo (WFC -2.5%), KeyCorp (KEY -4.6%), SunTrust (STI -3%), Comerica (CMA -3.6%), BB&T (BBT -2.9%), Fifth Third (FITB -2.7%), Regions Financial (RF -4.4%), BNY Mellon (BK -2.8%), MetLife (MET -3%), Prudential (PRU -2.9%).

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