Reuters
Bank concerns turned to European giants Deutsche Bank and UBS on Friday as investors worried that regulators and central banks have not yet contained the worst shock to the sector since the 2008 global financial crisis. Unease over the impact of higher rates on the beleaguered banking sector is leading investors to expect more dovish monetary policy going forward, and pulling yields lower. “The fact that the Fed was so dovish on Wednesday, which was a result of the volatility we’ve seen in the financial sector ... has definitely been the big reason why we’ve seen this big bull steepening of the curve as the impact of monetary policy tightening starts to show up in the banking sector,” said Ben Jeffery, an interest rate strategist at BMO Capital Markets in New York.