U.S. Treasury yields are sliding, and that could negatively impact financial institutions, CNBC’s Jim Cramer said Monday.
“Worries about a worldwide slowdown mean people will buy [U.S.] Treasurys, and when people buy Treasurys, interest rates go down,” the “Mad Money” host said. “Lower long-term rates translate to lower earnings for the banks, which is why they’ve been coming down so hard.”
Bond yields, or interest rates, move inversely to price. The yields on the benchmark 10-year Treasury note and 30-year Treasury note are both down more than 15 basis points over the past week.
