Banks Offload Bonds at a Loss, Betting on Future Fed Rate Reductions U.S. regional banks are increasingly selling underwater bonds at a loss to prepare for anticipated interest rate cuts by the Federal Reserve. Unlike the panic induced by Silicon Valley Bank’s similar actions last year, these banks are reinvesting the proceeds into higher-yielding securities to benefit from future lower rates. This strategic move, undertaken by banks like PNC Financial Services and Truist, aims to enhance long-term net interest income despite short-term losses. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Silver Surges Past Gold, Ratio Suggests Further Gains to Come READ MORE Yield Curve's Predictive Power in Question as Economic Growth Continues READ MORE No Immediate Rate Cuts: Fed Takes Cautious Stance on Inflation READ MORE Tech Stocks Lead Market Plunge Amid Economic Uncertainty READ MORE How & Where to Buy Gold Coins [2024 Buying Guide] READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment