Shares of banks and other financial institutions ticked down as Treasury yields remained well below recent highs.
After a dramatic slide last week, the yield on the 10-year Treasury note closed just below 1.6%. Some Wall Street economists warn about tax provisions in the latest Biden administration stimulus spending packages.
"But we think the potential drag from higher corporate taxes will not be large enough to derail the bull market," said strategists at Swiss bank UBS Global Wealth Management. The UBS strategists said the financial industry could benefit from the short-term hit to economic growth caused by the tax increases, as one ripple effect would be higher interest rates, which typically boost lending profits.
Swiss bank Credit Suisse said two executives in charge of its prime brokerage unit, John Dabbs and Ryan Nelson, will leave in the wake of its $4.7 billion loss from the collapse of hedge fund Archegos Capital Management, one of the unit's key clients.
Financial industry pioneer Richard Sandor is ramping up his efforts to compete in the race to replace the London interbank offered rate, which helps set borrowing costs on everything from mortgages to business loans.
International ownership of Chinese government debt declined slightly in March to the equivalent of $313 billion, according to the China Central Depository & Clearing Co. Holdings.
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(END) Dow Jones Newswires
April 19, 2021 16:40 ET (20:40 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.