Regional banks have been buoyed by a broadening out of the bull-market rally — and investors see the momentum continuing even if the overall rotation fizzles out. The S&P Regional Bank Select Index, home to lenders like Pathward Financial Inc. and Metropolitan Bank Holding Corp., is on track to outperform the S&P 500 Index for a third consecutive month, the longest winning streak since 2022. Some 10% of the members of the regional bank index are set to disclose their results in the next two days. A steepening of the yield curve and an expected pick-up in dealmaking activity should also bode well for the sector. Schachter’s bullish stance on regional lenders is linked to a steepening of the Treasury yield curve, which happens when longer-dated yields climb faster than short-term ones.