Banks, lenders and other financial companies rose alongside Treasury yields. The yield on the two-year note hit its highest level of the year so far. Yields on other Treasurys, including the 10-year, which is used as a benchmark for many lending rates, remain depressed, however. "Financials have bounced recently and it is a conundrum to many, as yields have also backed off," said Ryan Detrick, senior investment strategist at brokerage LPL Financial. "Usually the two trade together, but the divergence over the past few weeks makes you wonder which is going to break first." One strategist said yields reflect a nervousness about a "soft patch" in the economy. "Investors have become slightly more pessimistic in recent weeks," said Bob Doll, chief investment strategist at money manager Nuveen Investments, in a note to clients. "U.S. economic data has softened, and currently high consumer and business confidence levels could diminish."
-Rob Curran, [email protected]