Bank stocks are sliding as heavy buying at the long end of the Treasury curve has the flattened the 2-10-year spread to 78.5 basis points, near its flattest level since the end of 2007.
The benchmark 10-year yield is down 9.6 bps to 2.07% and at its lowest levels since the week following President Donald Trump’s election victory. The 5-year yield is lower by 5 bps at 1.28%
A flatter yield curve hurts bank profitability, allowing them to make less on the spread between what they borrow in the short-term and what they lend over the long-term.
But the damage isn’t limited to just those names. The financial sector as a whole is feeling the heat. Here’s a look at the scoreboard as of 1 p.m. ET: