Over the last two weeks, the S&P Banking index and the KBW Regional Banking index plunged by 4.6% and 5.4%, respectively, their largest two-week drops since March 2020. The yield on benchmark 10-year Treasury notes US10YT=RR fell to 3.423% versus 3.583% previously. The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, fell to 3.8354% from a previous close of 4.13%. Germany's 10-year government bond yield DE10YT=RR dropped to 2.069%, its lowest since the start of February, late in the session. Inflation expectations are falling, giving the Fed some flexibility in the future path of rate hikes," said Jeffrey Roach, Chief Economist for LPL Financial in Charlotte, North Carolina.

Source: bd News24 March 18, 2023 06:06 UTC