15 Mar 2021

Interest rates are rising, should real estate be concerned?

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Thumb: Interest rates are rising, should real estate be concerned?
by Indraneel Karlekar, Ph.D., Senior Managing Director, Global Research & Strategy
Arthur Jones, Director Real Estate Research

Capital markets are increasingly penciling in a higher interest rate scenario as reflected in a sharp steepening in the Treasury yield curve over the past 30 days. The yield on the 10-year bond has increased by 40 bps over the past 30 days. Capital markets anticipate a continued increase in benchmark 10-year yield, which has resulted in elevated volatility in public risk assets as well as growing questions on appropriate risk premia from illiquid investments. Read the latest research piece for more.