SVB Financial’s troubles created uncertainty about a potential contagion effect in the banking industry that fostered a strong flight to safety bid in the Treasury market. The 2-yr note yield fell 29 basis points to 4.59% and the 10-yr note yield is down 23 basis points to 3.70%.
The SPDR S&P Banking ETF (KBE) declined 4.2% and the SPDR S&P Regional Banking ETF (KRE) fell 4.4%.