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Bank stocks up, yields rise

A recent rise in bond yields has given financial stocks a boost. The Financial Select Sector Fund is up about 6 percent week-to-date, versus a 3.6 percent gain for the S&P 500.

The latest rise in bond yields has boosted financial stocks, but the rally’s staying power remains in question.

The Financial Select Sector SPDR Fund is up about 6% week to date versus a 3.6% gain for the S&P 500. The U.S. 10-year Treasury yield has been pushing further above 1% with fiscal stimulus once again on the table in Congress.

Though the financials are still underperforming the broader market over the past 12 months, they have picked up significant steam in the last six months. The XLF has jumped more than 27% since August, and the SPDR S&P Bank ETF (KBE) has surged 47% in that time frame. The S&P 500 is up 17 % over that time period.

While the XLF has seen a good short-term move, its chart hasn’t yet confirmed a longer-term push higher, Mark Newton, president and founder of Newton Advisors, said in a report by CNBC.