Financials Fall as Yields Spike - Financials Roundup

Shares of banks and other financial institutions declined as the surprisingly strong May jobs data spurred a jump in Treasury yields.

"The print supports our expectation for the Federal Reserve to remain patient delaying the first rate cut until enough data has suggested sufficient progress on the inflation front," said Yelena Shulyatyeva, senior U.S. Economist at brokerage BNP Paribas.

Gradual increases in yields can bolster lending profitability, but sharp moves in loan rates typically weigh on demand.

Rising yields could also put pressure on commercial property owners who often borrow using variable rates.

Old National Bancorp fell after credit-ratings agency Moody's placed its long-term debt, and that of several other U.S. regional banks on review for downgrade, citing commercial real-estate exposure.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

06-07-24 1726ET