Big US Banks Miss on Bond Trading as Rate Swings Freeze Clients

Four large US banks reported weaker-than-expected bond-trading revenue for Q3 2026, October earnings reports show. Wild swings in interest rates kept clients on the sidelines. Morgan Stanley's bond-trading revenue fell 7% from a year ago; Bank of America's sales and trading fell 5% to $5.1 billion. For savers, choppy rates can make bank profits bumpier without necessarily cutting deposit rates.