The attached chart shows the yield on the US 10yr outright over the last 20 years while also putting the relative "steepness" of the US Treasury curve in perspective.

Edward Scavone of Van Der Moolen Specialists checks stock prices at his trading post on the floor of the New York Stock Exchange, Tuesday, April 19, 2005, in New York. Lower-than-expected increases in wholesale prices cheered investors and boosted stocks Tuesday as Wall Street's inflation worries were assuaged, at least for the short term. Strong corporate earnings also fueled buying. (AP Photo/Kathy Willens)

While it is correct to point out the challenges faced by banks in the post-2008 regulatory world and it is arguable that they face other major threats to earnings from "fin-tech" disruption, you can't necessarily say banks are seeing unprecedented pressure on their core lending business from the flat yield curve.

The chart below shows that spread of 2yr notes to 10yr (IEF, quote) notes has contracted from almost 270 bps in 2014 to 79 bps this morning, we are far from...

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