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 Stacking Gold Bars in BullionStar’s Vault READ MORE High Prices Dampen Gold Demand at India's Akshaya Tritiya Festival READ MORE What’s Driving Gold to All-Time Highs? READ MORE "US Taxpayers Owe $3/4 Million Each, It's the Biggest Banana Republic of All" – Mike Maloney READ MORE Crude Market Heats Up: WTI Climbs 3.3% as Supply-Demand Gap Narrows READ MORE Add a Comment Cancel replyYour email address will not be published.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