BeInCrypto • October 11th 2026, 9:22 AM
Bond Market Woes Squeeze US Banks, Spark Global Market Turmoil
Key Summary
Global bank stocks plummeted this week as the 10-year US Treasury yield surpassed 5.35%, its highest since 2002, causing significant losses for US banks and sparking concerns about another Silicon Valley Bank (SVB) collapse. The Federal Deposit Insurance Corporation (FDIC) reported $326.7 billion in unrealized losses on bonds, while investors are hoarding cash, further exacerbating the market downturn.
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Market Impact
Bank stocks fell across the US, Europe, and Singapore this week after the 10-year US Treasury yield topped 5.35%, its highest since 2002. Higher yields cut the value of bonds banks already own.Bond Losses and Capital
US lenders still carried $326.7 billion in paper losses on bonds at the end of June, before yields jumped again. The Federal Deposit Insurance Corporation (FDIC) put those unrealized losses at $326.7 billion for the second quarter, per its report.Risks of Another SVB Collapse
The same squeeze helped bring down Silicon Valley Bank (SVB) in 2023. US lenders still face the same bond problem, while traders feared France's debt strains could spread. Could another SVB collapse happen?Market Outlook
Today's numbers look different. KBW chief Tom Michaud said bond losses equal about 5% of bank capital, down from 19% in 2023, in his Q3 earnings outlook. US deposits also grew for an eighth straight quarter through June, the FDIC said.Investor Behavior
Investors are also hoarding cash. Money market funds drew $166 billion in one week. JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo report results on October 13. Those numbers will show how much the bond slump has eaten into bank capital.#Bitcoin#US#Crypto#SEC#Europe#Singapore