Wall Street banks reported weaker fixed-income trading revenues in the third quarter as a sharp selloff in the bond market and heightened interest rate volatility dampened client activity, while equities trading delivered strong growth, Reuters reported.
According to Reuters, Treasury yields climbed to multi-decade highs during the quarter, and abrupt market moves prompted investors to reassess their expectations for the future path of interest rates. The benchmark 10-year US Treasury yield recorded its biggest quarterly increase since 2009 by the end of September.
