TSX:NXR.UN - Post by User
Post by
duplex5696on May 13, 2022 1:57pm
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Post# 34682327
Reits Vs. 10 Year US Treasury
Reits Vs. 10 Year US TreasuryYesterday while markets were down significantly throughout the course of the day, Reits were trending upward. The catalyst was the 10 Year treasury yield which had shed approximately 25 basis points from recent highs.Investors will always look at the yield gap between Reits and Bonds. As the gap increases Reits will look more attractive. Today Reits began the day firmly on the upside gaining momentum from market strength. As the trading day progressed Reits began to give back earlier gains. Part of this decline is attributable to continued market fluctuations but even more significant is the movement of Bond yields which showed an increase of about 10-11 basis points. The narrowing of the yield gap will make Bonds look more palatable.
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