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How to trade banks after Janet Yellen hints at March rate hike.

Trader Guy Adami said bank stocks are in an environment where they will continue to rally.

Trader David Seaburg said regional banks are where traders should place their bets.
The “Fast Money” traders broke down Federal Reserve Chair Janet Yellen’s Friday remarks about a possible March rate hike on Friday, while picking stocks to trade in the financial sector.
Out of the big banks, trader Tim Seymour said he likes Bank of America, Citigroup and J.P. Morgan.
Diamond Offshore: an employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore”

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Janet Yellen puts a rate hike on the table for this month

Janet Yellen

Fed Chair Janet Yellen dropped a strong hint Friday that an interest rate hike is on the way later this month.
However, the remarks will confirm a growing feeling, brought on by comments from multiple other policy makers, that another hike is on the way.
She also said global economic risks had receded and believes the Fed is not behind the curve on rates.
Yellen’s comments are not likely to come as a surprise to a market that has been bracing this week for a coming Fed move.
“We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect,” Yellen said at a speech in Chicago, according to prepared remarks.

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trade banks

The 2-year Treasury yield hit a fresh high going back to Aug 7, 2009, reaching 1.341 percent earlier in the session.
According to the CME Group’s FedWatch tool, market expectations for a rate hike in March were around 77 percent.
Fed Vice Chair Stanley Fischer also spoke on Friday and made comments against linking the central bank’s policy decisions to specific rules or triggers but did not discuss a March rate hike.
The yield on the benchmark 10-year Treasury note was higher around 2.491 percent, while the yield on the 30-year Treasury bond yield was also higher at around 3.083 percent.
The likelihood of a rate hike at the March 14-15 Federal Open Market Committee meeting has increased dramatically in recent weeks amid improving economic data and hawkish Fed rhetoric.

collected by :John Locas

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