Shares of banks and other financial institutions ticked down as traders hedged their bets on the implications of a surge in Treasury yields.
Higher yields boost banks' profit margins on loans, but have also dented the value of Treasury holdings on their balance sheets.
Rates on many credit products, including commercial-property loans, are benchmarked to Treasurys so that moves higher could exacerbate the distress in these troubled markets and potentially lead to more regional bank failures.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-26-24 1745ET
