US 10-year Treasury yield rises to ~5.34% ahead of bank earnings season
The S&P 500 banks index fell 7.5% in September, its biggest monthly drop since March. UBS analyst Erika Najarian said that once the 10-year Treasury yield hits 5%, further climbs tend to negatively impact market multiples.
34% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Treasury Yields Loom Large Ahead Of Bank Earnings Season With earnings season fast approaching, the biggest US banks have finished their weakest month since March amid a bond market selloff. Against that backdrop, UBS analyst Erika Najarian was out with a research note examining whether it's "time to wade back in" to bank stocks or if the sector has peaked. 5% dip.
" With that in mind, the analyst looked at some of the biggest banks individually. For Citigroup, she notes that the stock has reflected the most disappointment since the last earnings season as it reiterated an expectation for 10-11% return on tangible common equity even though it was about 13% in the first half. " As for Morgan Stanley, the analyst says her expectations are below consensus for Q3.
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