US Treasury bonds and major banks see activity amid high interest rates

Major US financial institutions and investors are reacting to a high-interest-rate environment. US Treasury bond funds saw approximately $14 billion in net inflows since the beginning of October, following a record third quarter with $59.3 billion in total inflows. This surge is driven by the 10-year Treasury yield reaching 5.24%, one of its highest levels in 24 years, making fixed-income investments more attractive to institutional investors like Amundi.

Simultaneously, the largest US banks—JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs—reported increased profits compared to last year. JPMorgan Chase reported a third-quarter profit of $15.3 billion, though this figure fell short of Wall Street expectations of $5.93 per share. Despite the earnings growth, leadership at these institutions warned of economic risks, including persistent inflation, large budget deficits, and the long-term impact of high interest rates on consumers.