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 Gold Prices Rangebound Ahead of Key U.S. Inflation Data, Fed Decision READ MORE First ever filming of Singapore’s Gold Reserves in Super-Secret Gold Vault READ MORE Crude Futures Decline as Israel Holds Back from Retaliating Against Iran READ MORE Bill Gross Urges Federal Reserve to Halt Tightening and Slash Rates to Avert Recession READ MORE Cash-Strapped Pakistan to Introduce New Series of Currency Notes READ MORE Add a Comment Cancel replyYour email address will not be published.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