Exchange-traded funds with exposure to bank stocks fell on Thursday as investors piled into the bond shelter, sending yields to new historic lows. KBW Bank ETF
BKX,
was down about 5.7% at noon, and the SPDR Financial Select Sector
XLF,
lost 4.8%. Since the start of the year, these funds have fallen by 22.5% and 14% respectively. Banks make money when interest rates are higher and when there is a larger gap between short and long-term rates, but the Federal Reserve made a rare emergency cut on Tuesday rates by 50 basis points, its first monetary policy decision of this type since the publication of the 2008 financial statements. crisis .. Thursday, the 10-year Treasury yield
TMUBMUSD
hit a new historic low, reaching an intraday nadir at 0.898% on Thursday, as concerns about the impact of COVID-19 on global economies and supply chains increase.