US Bank Investors Focus on Rates Ahead of Q3 Earnings
Investors are closely watching upcoming third quarter earnings from major US banks to gauge the impact of rising Treasury yields on lending and dealmaking. While profits are expected to grow, surging bond yields have pressured bank stocks and slowed capital markets activity late in the quarter.
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United States bank investors are bracing for third-quarter earnings next week, focusing on how a recent spike in Treasury yields will impact dealmaking, lending growth, and funding costs. Third-quarter profits for the largest lenders are projected to rise up to 20% compared to last year. However, climbing bond yields have pressured bank stocks, pushing the KBW Bank Index down 13% from its August peak close.
