Rates Are Up & REITs Are down…

US Treasury yields have surged to the highest levels since late July, with the 10-year yield jumping to 1.945%.

The higher rates in the US bonds have seen domestic REITs move lower by an average of 5%, despite a generally better-than-expected earnings season.

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An opportunity will soon approach within a number of the yield sensitive names and investors should be watching out for oversold levels to present within REITs, infrastructure, utilities and gold names.

An example of a name we’re watching for a buying point is Dexus Group. We’ll update you on the blog as we see the buying point playout.

 

 

Author: Leon Hinde

Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.

PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:

· Deposit Products
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks