Shares of banks and other financial institutions rose after consumer inflation fell for the first time in three years.
Treasury yields closed near multi-month lows after the Commerce Department reported a down-tick in month-to-month inflation as measured by the Federal Reserve’s preferred guage, the Personal Consumption Expenditure index.
The recent surve in the value of long-term bonds has eased pressure on banks including Bank of America, which were sitting on multibillion dollar paper bond losses, potentially limiting their access to capital for lending and other profitable business applications.
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