The spreads on bank bonds have tightened by an average of 10 basis points in the past two weeks, signaling renewed investor confidence in the industry.

"The market has given bank bonds a reprieve from the inexorable interest rate rises from last year," said Ann Robinson, a fixed- income analyst at Bear, Stearns & Co.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.