The last thing new borrowers and their bankers want to see is higher interest rates. Bad news: Refinancing to avoid foreclosure is getting even more difficult.
On Thursday, the yield on 10-year U.S. government debt reached the pinnacle of a three-month, 94-basis-point rise. This benchmark closing at 4.2108% is up 17 basis points for the week and at its highest level this year. A basis point is 1/100th of a percentage point.
The elevated interest rates are not good for stocks, especially the financials. While the S&P 500 slipped 4.53% for the five trading days ending Thursday, June 12, the Dow Jones U.S. Financial Sector index dropped 7.14%.
When that financial-sector index, with about 250 members, is compared to the KBW Bank Index of 24 national money center banks and large regional institutions, we can focus in on the problem. The KBW Bank Index was nearly decimated, at -9.37% for the period, knifing down to its lowest level since October 2002. ...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
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DOWN
154.48
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19.14
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37.61
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0.48
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10 Yr
3.23%
SPDR Gold
115.06
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-1.48%
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-1.72%
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-1.73%
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-1.46%
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