Bank stock took a hit Monday, as the yield on 10-year Treasury notes fell for a sixth-straight session, which would be the longest losing streak this year. The SPDR Financial Select Sector ETF (XLF) fell 0.5%. Within the ETF, shares of Bank of America Corp. (BAC) dropped 0.8%, Citigroup Inc. (C) shed 0.8%, J.P. Morgan Chase & Co. (JPM) lost 0.6%, Wells Fargo & Co. (WFC) gave up 0.5% and Goldman Sachs Group Inc. (GS) lost 0.6%. The 10-year Treasury yield fell 5.6 basis points to 1.699% after weak eurozone data ( ), and has declined 20.4 basis points since closing at a 6-week high of 1.903% on Sept. 13. Another decline at the close would mark the longest losing streak since the eight-day stretch ending Dec. 7, 2018. Lower longer-term yield can hurt bank profits, as it reduces the spread between what banks earn on longer-term assets that are funded by shorter-term liabilities. The financial ETF has gained 17.9% year to date through Friday, while the Dow Jones Industrial Average has advanced 15.5%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 23, 2019 08:51 ET (12:51 GMT)
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