Bank stocks fall as Treasury yields rise
BAC Bank Of America Corp
$54.32 +1.32%
View chart & analysis → - 1The KBW Nasdaq Bank Index fell 9.7% over the past month.
- 2The 10-year Treasury yield reached 5.31% this week.
- 3Rising bond yields reduce net interest margins for banks.
So what's the key point?
Bank indices dropped significantly as Treasury yields rose to 5.31%. This is because rising bond yields decrease the interest income earned by banks.
Source The Motley Fool +1 · View original ↗
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