BOND YIELDS BOUNCE ON STRONG JOBS REPORT -- FINANCIALS ARE HAVING A VERY STRONG DAY -- SO ARE BANKS

10-YEAR TREASURY YIELD REBOUNDS... A strong July jobs report is helping boost bond yields today.   Chart 1 shows the 10-Year Treasury yield bouncing 7 basis points to 1.29% on the day.  A small double bottom on the daily bars suggests that a bottom may be forming.  The TNX is also close to regaining its 200-day moving average.   Today's rebound in bond yields appears to be giving a big boost to financial shares.

FINANCIAL SPDR GAPS HIGHER...Financials are the day's strongest sector.   Chart 2 shows the Financial Sector SPDR (XLF) gapping 2% higher today which pushes it well above its 50-day moving average.  Most of the individual groups within the XLF are trending higher including insurance stocks and banks.

BANK SPDR CLEARS 50-DAY LINE...Bank stocks are having a strong chart day.   Chart 3 shows the S&P Bank SPDR (KBE) gapping 3% higher on the day and trading above its 50-day moving average.   That's following a successful test of its 200-day moving average during July.   Banks are usually one of the biggest beneficiaries of rising bond yields.