HAUZ - Surging Yields Negate REITs' Reopening Rebound

• U.S. equity markets were broadly lower on a choppy week after encouraging coronavirus data and positive vaccine news triggered a "reopening rotation" that sent Treasury yields soaring to mid-pandemic highs.
• Declining for the second-straight week, the S&P 500 retreated by 2.5%, while the tech-heavy Nasdaq 100 plunged 5.1% as investors rotated out of the COVID-winners and into more economically-sensitive sectors.
• A strong week from the COVID-sensitive property sectors lifted real estate equities to another week of relative outperformance as the broad-based Equity REIT ETFs were lower by roughly 1%.
• All eyes were on the Treasury markets this week as the 10-Year Treasury Yield briefly surged above 1.60% - the highest level since last March - despite dovish commentary from Fed Chair Powell.
• "Beat and Boost" continues to be the theme of REIT earnings season. On a jam-packed week of earnings reports, a dozen more REITs raised their dividend, bringing this year's total to 33.

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