Market Extra: How an inverted yield curve helped sink Silicon Valley Bank

The financial sector tends to be among the most sensitive to interest rates, with banks and other financial institutions often able to expand profit margins when yields are on the rise.

But it can get complicated. With the Federal Reserve’s aggressive hiking of rates over the past year pushing a closely watched part of the U.S. Treasury yield curve to its deepest inversion since 1981, banks can suffer. And that appeared play a role in the demise last week of Silicon Valley Bank, or SVB, analysts said.

Banks…