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Treasury yields pick-up could mark inflection point in U.S. bank earnings

Published 01/13/2017, 04:59 AM

Investing.com - The rise in U.S. Treasury yields after Trump's surprise election win could buoy bank earnings.
(NYSE:{{243|Bank of America}), (NYSE:JPMorgan), (NYSE:Wells Fargo) due to report Q4 earnings Friday before market opens.
Yields rose on view Trump's fiscal stimulus plans could push inflation higher and put upward pressure on interest rates.
The yield on the 30-year Treasury rose above 3% for the first time since the end of 2015 shortly after Trump's triumph.
A low-interest environment puts downward pressure on bank trading margins.
Bank of America (NYSE:BAC) Q4 EPS estimated at $0.38 on revenues of $20.83 bn.
JPMorgan EPS forecast at $1.44 on revenues of $23.74 bn; Wells Fargo EPS $1.0 on revenues of $22.28 bn.
Bank stocks have also been boosted by bets of Trump unwinding some bank regulations.

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