BAC - Regional banks wipe out this week's gains amid bounce in the long bond

Fifth Third Bank (FITB -1.8%), Bank Ozk (OZK -2.2%), M&T Bank (MTB -2.2%) and CIT Group (CIT -3.3%) are among some of the largest percentage change losers in the regional banking sector, erasing this week's gains. The SPDR S&P Regional Banking ETF (KRE -1.9%), is also down on the week, though the 10-year U.S. Treasury yield is still elevated from last week, above 1.50%. In addition, the Financial Select Sector SPDR ETF (XLF -1.0%) is holding up along with long bond yields; commercial banks like JPMorgan Chase (JPM -0.9%), Bank of America (BAC -0.8%) and Wells Fargo (WFC -1.1%) make up about 14% of the ETF's total holdings. As of Tuesday's close, regional banks +8.0% outperforms financial stocks +1.7% by almost 5x, according to the chart below.  Private payrolls in September came in well above expectations at 568K jobs, but the 10-year UST yield continues to fall, implying bond (NASDAQ:TLT) investors may have already

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Regional banks wipe out this week's gains amid bounce in the long bond