The Latest on financial markets (all times local): The nation’s largest banks face a hit to their profits as the Federal Reserve slashes interest rates and bond yields continue sliding amid the coronavirus pandemic, which is putting the brakes on the economy as businesses and travel shut down.
Banks like Bank of America, JPMorgan Chase and others rely on interest from mortgages and other kinds of loans to make their profits, so when those rates fall sharply, so do their earnings.
Yields on bonds like the 10-year Treasury note are used to set rates on mortgages, and those yields have been dropping, pushing mortage rates to record lows.