Investors Fret Over Financials

Financials were falling off of weak economic reports and game-changing plans at a few major U.S. financials both of which pointed to more pain in the pipeline for investors.



Morning trading in the perceived safety of government debt was mixed, as the inflation reading (see "PPI: Pretty Painful Inflation") and disappointing home building figures sent the yield on the 10-year Treasury note up to 3.83%, from 3.82% Monday, and the 2-year note yield fell to 2.30%, from 2.35%. The divergent yields pointed to confidence in long-term stock prospects, but a short-term flee to safety.

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