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Financial sector ETF pulls back from record despite big jump in Treasury yields

The financial sector suffered broad losses Thursday, as support from a big jump in Treasury yields (link) wasn't enough to offset the broader-market selloff. The SPDR Financial Select Sector ETF (XLF) fell 1.0% in afternoon trading, to pull back from Wednesday's record close, with 56 of its 65 equity components losing ground. Meanwhile, the S&P 500 slumped 1.9%. Among the financial ETF's (XLF) more-active components, shares of Bank of America Corp. (BAC) slumped 0.7%, Citigroup Inc. (C) shed 0.8%, Wells Fargo & Co. (WFC) lost 1.4% and J.P. Morgan Chase & Co. (JPM) slid 0.9%. Meanwhile, the yield on 10-year Treasury note jumped 11.0 basis points toward a one-year high of 1.499%. Higher long-term yields can lead to higher bank profits, as they can increase they spread between what banks earn on longer-term assets, like loans, that are funded by shorter-term liabilities. Over the past three months, the XLF has gained 16.3%, while the 10-year Treasury yield has climbed by 62.1 basis points and the S&P 500 has gained 6.0%.

-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

02-25-21 1352ET

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