Banks are sliding as the yield curve nears its flattest level since 2007

Bank stocks are sliding as heavy buying at the long end of the Treasury curve has the flattened the 2-10-year spread to 78.5 basis points, near its flattest level since the end of 2007.

The benchmark 10-year yield is down 9.6 bps to 2.07% and at its lowest levels since the week following President Donald Trump's election victory. The 5-year yield is lower by 5 bps at 1.28%

A flatter yield curve hurts bank profitability, allowing them to make less on the spread between what they borrow in the short-term and what they lend over the long-term.

Goldman Sachs and JPMorgan Chase are among the biggest laggards in the Dow Jones industrial average, trading down 3.2% and 2.5%, respectively.

But the damage isn't limited to just those names. The financial sector as a whole is feeling the heat. Here's a look at the scoreboard as of 1 p.m. ET:

• Bank of America -3.2%
• Citigroup -2.4%
• Goldman Sachs -3.2%
• JPMorgan Chase -2.5%
• Wells Fargo -2%