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Oct. 3, 2018, 1:08 p.m. EDT

A popular bank fund is on pace for its best day in 6 months as 10-year Treasury yields 3.14%

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By Mark DeCambre

One popular financials exchange-traded fund midday Wednesday was on track for its highest daily gain in more than 6 months as yields for U.S. government bonds soared amid a broad-market stock rally. The SPDR S&P Bank ETF /zigman2/quotes/201006419/composite KBE -0.73% was recently up 2.35%, putting the fund on pace for its best daily climb since March 26 when it rose 3.3%. The move for KBE was supported by an advance in shares of Webster Financial Corp. /zigman2/quotes/207965570/composite WBS -0.44% , Axos Financial Inc. /zigman2/quotes/202367185/composite AX -0.71% , Home Bancshares Inc. /zigman2/quotes/208559109/composite HOMB -1.09% and Fulton Financial Corp. /zigman2/quotes/204224869/composite FULT -1.12% , which were all showing gains of at least 4%. That rallied has been underpinned by a climb in long-dated bonds, with the 10-year Treasury yield advancing to its highest level since 2011 and the 30-year Treasury note yield hitting hitting its own multiyear peak. Rising yields tend to be bullish for banks's business models. On top of that, investors have been exiting assets perceived as safe, like bonds, and buying stocks, which has pushed the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.44% , the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.77% and the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +1.49% to records or near all-time highs. Healthy economic reports, notably a strong reading of ADP private-sector employment and an upbeat services sector reading, have helped to bolster buying enthusiasm for stocks. Bond prices fall as yields rise.

/zigman2/quotes/201006419/composite
US : U.S.: NYSE Arca
$ 31.07
-0.23 -0.73%
Volume: 2.40M
July 31, 2020 4:00p
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/zigman2/quotes/207965570/composite
US : U.S.: NYSE
$ 27.27
-0.12 -0.44%
Volume: 799,719
July 31, 2020 4:00p
P/E Ratio
9.36
Dividend Yield
5.87%
Market Cap
$2.46 billion
Rev. per Employee
$405,925
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/zigman2/quotes/202367185/composite
US : U.S.: NYSE
$ 22.41
-0.16 -0.71%
Volume: 440,451
July 31, 2020 4:00p
P/E Ratio
7.51
Dividend Yield
N/A
Market Cap
$1.34 billion
Rev. per Employee
$739,700
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/zigman2/quotes/208559109/composite
US : U.S.: Nasdaq
$ 16.33
-0.18 -1.09%
Volume: 967,411
July 31, 2020 4:00p
P/E Ratio
12.49
Dividend Yield
3.18%
Market Cap
$2.70 billion
Rev. per Employee
$434,061
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/zigman2/quotes/204224869/composite
US : U.S.: Nasdaq
$ 9.70
-0.11 -1.12%
Volume: 872,707
July 31, 2020 4:00p
P/E Ratio
9.14
Dividend Yield
5.36%
Market Cap
$1.57 billion
Rev. per Employee
$272,604
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
26,428.32
+114.67 +0.44%
Volume: 491.37M
July 31, 2020 5:07p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,271.12
+24.90 +0.77%
Volume: 3.07B
July 31, 2020 5:07p
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/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
10,745.27
+157.46 +1.49%
Volume: 3.99M
July 31, 2020 5:16p
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