Why banks go down heavily on new Covid variant news?
Title is self-explanatory, but what's the reasoning behind the heavy downtrend of banks and the new covid variant? The way I see it banks will benefit from the most than likely interest hike if inflation persists. Anyone can shed some light on this?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Marilyne : The 10 year rate drops with COVID fears. Bank returns rise with the 10 year due to higher yields on loans. So as COVID fears rise the 10 year yield drops, tech goes up because of lower debt costs, and banks drop on lower yields since they service the debt.