- Might the FOMC surprise with no hate hike this afternoon? There's a buying panic at the long end of the Treasury curve, with the 10-year yield down 10 basis points to 2.115% - another low for the year, and a level not seen since the day after the U.S. election.
- Meanwhile at the short end, traders are pricing in only this afternoon's rate hike, and then nothing more for 2017.
- There was some weak economic data this morning - retail sales had their worst month since Jan. 2016, and core CPI continues to fall - but it's hard to imagine this news causing a 10 basis point drop in the 10-year.
- The major averages are flat, but the KBW Bank ETF (KBE -1.7%) and KBW Regional Bank ETF (KRE -1.5%) are both sharply lower - partly reversing a big run higher over the previous week.
- Bank of America (BAC -1.6%), Citigroup (C -1%), JPMorgan (JPM -1.4%), Morgan Stanley (MS -1.7%), U.S. Bancorp (USB -1.5%), New York Community (NYCB -2.3%), PNC Financial (PNC -1.2%)
- ETFs: XLF, FAS, FAZ, VFH, UYG, IYF, FNCL, BTO, IYG, FXO, SEF, RYF, FINU, XLFS, FINZ, RWW, FAZZ, JHMF, FNCF
- Now read: Valuation Dashboard: Financials And Real Estate - Update
Original article