Shares of banks and other lenders and money managers rose as Treasury yields kept inching higher.
The yield on the 10-year Treasury note rose for the seventh straight session, the longest winning streak since September 2017. The 10-year note yield is now at its highest level since March, which means the outlook for profit margins on bank loans is improving. One strategist noted that, even after the recent recovery, Treasury yields remain near historic lows even as inflation is set to pick up in 2021, a development that underpins the rally in global markets.
"With inflation above the rate of Treasurys, that pushes people out into risk assets, which is the goal of the Fed's ... policies," said Brent Schutte, chief investment strategist at money manager Northwestern Mutual Wealth Management.
Wells Fargo shares rose after analysts at brokerage UBS recommended buying the San Francisco bank's shares after years of underperforming the sector.
Credit-card processor Visa is abandoning its $5.3 billion planned acquisition of Plaid, a key player in the financial-technology space, in the face of a Justice Department antitrust lawsuit that challenged the deal.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-12-21 1733ET
