Inflation target, risk free rate, cap ratesWall Street Journal hints at raising the 2% inflation target.... long end of bond curve up... risk free rates up... which means bond holders are getting their heads squeezed and cap rates will need to continue to be revised higher... many REITs already have implied cap rates far exceeding the new risk free rate... hr for example has an implied cap rate before considered pv of latent tax of 7.6%, while almost half the portfolio is residential (the real estate asset class with the lowest relative cap rate).