XLF: Falling US 10 Year T-Note Yield Vs XLF (Banks)
With the S&P-500 at all time highs, have you ever wondered why financials are lagging?
Many people bought bank shares last year because they were cheap. Guess what? They got cheaper.
This is a comparison of-XLF and the falling yield for 10 year T-Notes.
This is a a NON-INVERSE relationship.
If yields keep falling, banks will have a very hard time making money on interest rate spreads.
Some regional banks may buck this trend, but I believe most will not.
If crude slips below $40 per barrell, many banks will have non-performing loans with oil companies.
My conclusion, XLF-grinds lower as 10 year T-Bill yields continue to fall.
Good luck to you with all of your trades. Don.
Many people bought bank shares last year because they were cheap. Guess what? They got cheaper.
This is a comparison of-XLF and the falling yield for 10 year T-Notes.
This is a a NON-INVERSE relationship.
If yields keep falling, banks will have a very hard time making money on interest rate spreads.
Some regional banks may buck this trend, but I believe most will not.
If crude slips below $40 per barrell, many banks will have non-performing loans with oil companies.
My conclusion, XLF-grinds lower as 10 year T-Bill yields continue to fall.
Good luck to you with all of your trades. Don.
