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The Jobs Number Could Signal Trouble For This Group Of ETFs

Benzinga.com
0 Comments| December 9, 2014

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The yield on the 10-year U.S. Treasury bond rose by over 2 percent last Friday, December 5 after the November employment report came in better-than-expected. The news was generally perceived as positive for the economy, and appears to have pushed investors to sell government bonds, sending yields higher.

The main driver of this selling activity was the thought that the Fed will be forced to raise its benchmark interest rate sooner rather than later. If this is the case, it will likely send bond prices lower.

While banks should stand to benefit from an increased rate hike, REITs (real estate investment trusts) could be on the other side of the eight ball. An increase in the interest rate of “risk-free” U.S. government bonds makes the interest rate paid by riskier assets such as REITs less attractive.

Most investors will purchases REITs solely for their ...

/www.benzinga.com/etfs/sector-etfs/14/12/5063774/the-jobs-number-could-signal-trouble-for-this-group-of-etfs alt=The Jobs Number Could Signal Trouble For This Group Of ETFs>Full story available on Benzinga.com

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