 share price rallied on Thursday after global bond yields rose following the release of Federal Minutes.){kind=link}
Lloyds (LON:LLOY) share price rallied on Thursday after global bond yields rose following the release of Federal Minutes.
The Federal Reserve released minutes on Wednesday that suggested a rate hike would be made before the end of the year and asset sales would begin October.
Following the financial crisis, the Federal Reserve has built a substantial balance as it embarked on a massive bond-buying program in an effort to support the US economy.
Signalling the end of the era of easy monetary policy sent bond yields higher today and the prospect of higher interest rates has supported the financial sector with Lloyds pushing as high as 67.1p on Thursday afternoon.
Banks benefit from a higher rates environment with UK peers Barclays and RBS both rose as much as 2 percent and European banks BNP Paribas and Deutsche Bank were between 1 and 3 percent to the good.
“No-one is expecting any big moves on the interest rate front in Europe but it’s about the direction upwards, and that is good for financials which account for a big part of European indices,” said Britta Weidenbach, Head of European equities at Deutsche Asset Management.
JP Morgan recently reiterated their overweight stance on Lloyds with a price target of 83p. Analysts at Deutsche Bank are also bullish on the stock with a target of 73p.