Fixed income

Regulators hope changes to the supplementary leverage ratio will improve Treasury market function, but whether that happens depends in large part on how banks react and adapt.

Lenders have been an underdog in the broader market's rally. Now, with stress-test results and the easing of bank capital rules on the horizon, there's a chance for bank stocks to break out.

Ark Investment Management has offloaded about 1.5 million shares of Circle over four recent trading sessions, worth roughly $333 million, according to Bloomberg. Wood's firm as a whole remains the eighth-largest holder of Circle.

The stock started trading at $31 and closed Monday at $263.45. Circle has been the main beneficiary of the euphoria surrounding stablecoin regulations, as it is one of the few publicly traded companies with stablecoin-linked assets.

The Federal Reserve's vice chair for supervision said changes to the supplemental leverage ratio are needed to bolster the Treasury market and ensure banks are not incentivized to take on excessive risks.

The co-heads of TD Securities Automated Trading estimate that more than 90% of transactions will eventually be automated.

The Treasury market experienced unexpected volatility in April after President Trump announced sweeping tariffs, but recovered after the moves were delayed. Some see that as proof of resilience in the market, but others say it highlights vulnerabilities.

This might deeply disappoint Wall Street investors who've been counting on a windfall if Fannie and Freddie are set free.

Bond yields are shooting up for the second time in as many months. Federal Reserve Gov. Christopher Waller attributes the volatility to concerns about rising national debt levels.