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Financials Up After Bank of England Intervention -- Financials Roundup

09/28/2022 | 05:24pm EST

Shares of banks and other financial institutions rose after the Bank of England pledged to buy British gilt bonds, easing a rout in sterling.

Violent moves in global bond yields in recent weeks have disquieted investors. The benchmark yield on the 10-year Treasury note saw its biggest drop since 2009 Wednesday. The yield was on pace for its largest gain in the first three quarters of a year since 1981, during the height of the last stagflationary era.

"The fact that risk-free [bonds] move so much, it's bad," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund.

For the British pound sterling, moves have been even more extreme, with a 6% drop in the two sessions after Chancellor Kwasi Kwarteng unveiled tax-cut plans on Friday. The reprieve for sterling and the global markets could be temporary amid widespread concerns about Mr. Kwarteng's deficit-building budget.

"The Chancellor is likely to come under increased pressure to change course," said analysts at brokerage BNP Paribas, in a note to clients.

Regions Financial agreed to pay $191 million to settle a regulator's accusations that it charged surprise overdraft fees that harmed its customers.

Jefferies Financial Group's profit dropped in the third quarter, as investment banking revenue slowed.

 Write to Rob Curran at rob.curran@dowjones.com 

(END) Dow Jones Newswires

09-28-22 1723ET

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / BRITISH POUND (AUD/GBP) -0.13% 0.5576 Delayed Quote.4.14%
BNP PARIBAS 0.19% 53.33 Real-time Quote.-12.24%
CANADIAN DOLLAR / BRITISH POUND (CAD/GBP) -0.17% 0.61802 Delayed Quote.5.84%
EURO / BRITISH POUND (EUR/GBP) 0.05% 0.85955 Delayed Quote.0.00%
INDIAN RUPEE / BRITISH POUND (INR/GBP) 0.03% 0.010123 Delayed Quote.1.97%
JEFFERIES FINANCIAL GROUP INC. 1.17% 38.11 Delayed Quote.-1.78%
REGIONS FINANCIAL CORPORATION 0.57% 22.87 Delayed Quote.4.91%
UK 10Y CASH -0.01% 3.123 Delayed Quote.246.03%
US DOLLAR / BRITISH POUND (USD/GBP) 0.16% 0.826925 Delayed Quote.11.70%
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