Financial stocks were set up for a broad selloff Monday, weighed down by the continued drop in Treasury yields (Bank of America Corp. (BAC) dropped 1.6%, Citigroup Inc. (C) slid 1.5%, J.P. Morgan Chase & Co. (JPM) slid 1.6%, Wells Fargo & Co. (WFC) gave up 1.3% and Goldman Sachs Group Inc. (GS) fell 1.6%. The yield on the 10-year Treasury note dropped 4.1 basis points to 1.690%, as growing concerns of increasing trade tensions drove demand for safe-haven assets. Lower long-term yields can hurt bank profits, as it narrows the spread between what banks earn on longer-term assets, like loans, and costs of shorter-term liabilities. the 10-year yield has declined 28.7 basis points so far this month, through Friday. The XLF has lost 1.1% over the past three months, while the S&P 500 has gained 1.3%.). The SPDR Financial Select Sector ETF (XLF) shed 1.1% in premarket trading. Among the financial ETF's (XLF) more-active components before the open, shares of
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 12, 2019 08:04 ET (12:04 GMT)
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