US 10-year treasury yield hit 12-week high

The sell-off in the treasury yield continues on growing speculation of faster/sequential fed rate hikes.

The benchmark 10-year treasury yield rose to a 12-week high of 2.624% this Friday morning in Asia. Yields continue to rise at the short-end of the curve as well.

Yield curve flattening is not good for banks

The 2-30 spread has flattened by a whopping 181 basis points in just over two years. The 2-10 spread has flattened by 149 points as well.

This is bad news for US banking stocks. The flattening yield curve is many times also a sign of upcoming economic weakness.