Over the past five trading sessions, the performance of major bank stocks has depicted a bullish stance as various economic data including employment report and inflation indicated that economic recovery is on track. Rise in expectations that the Federal Reserve might soon reveal plans for tapering its bond buying program further boosted sentiments.
This led the rate on both 10-year and 30-year Treasury bonds to rise over the past week despite concerns over increase in cases due to Delta variant of the COVID-19 virus. The rate on the 10-year Treasury bond stands at 1.36%, while that for the 30-year Treasury bond is 2.00%.
Thus, the steepening yield curve is expected to benefit major banks net interest margins amid a low interest rate envi…
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