- Let's begin by looking at the recent trend in the 10-year rate. The rise to 1.15% yesterday (Jan. 11) marks the highest level since last March.
- Although REIT returns and the 10-year yield are closely connected at times, overall the relationship reflects a correlation of about 0.10.
- Although gold is influenced by interest rates, the economic and financial context matters, perhaps a lot.
- The analysis above suggests caution in assuming that a rising 10-year Treasury yield is a strong factor for predicting near-term returns in stock, REITs and gold.
For further details see:
What Do Rising Interest Rates Imply For Stocks, REITs And Gold?