Shares of banks and other financial institutions rose slightly in volatile trading after a run-up in Treasury yields paused.
Federal Reserve Chairman Jerome Powell said the moves in yields did not worry him, and that he viewed the advances as "a statement of confidence" from investors in the economic path ahead. Interest rates are set to continue rising, but moves may not be as disruptive as past instances, such as the "taper tantrum" during the last economic recovery, according to one brokerage.
"Strong economic data, and the expectation for even stronger data driven by additional fiscal stimulus, is around the corner," said strategists at brokerage Morgan Stanley, in a note to clients.
The yield on the 10-year Treasury note is hovering around 1.37%, the highest level in roughly a year. "Rates will continue to rise due to increasing growth and inflation expectations and, eventually, Federal Reserve (Fed) normalization," said Ryan Detrick, chief market strategist at brokerage LPL Financial.
Wells Fargo agreed to sell its Wells Fargo Asset Management unit to investment firms GTCR and Reverence Capital Partners for $2.1 billion, as the San Francisco bank continues its turnaround effort following a sales-practices scandal.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-23-21 1716ET
