Rates Down, REITs Up [Daily Recap]

February 21, 2020 | Hoya Capital

Rates Down, REITs Up [Daily Recap] Uncategorized Feb 21 Written By U.S. equity markets stumbled into the weekend as investors piled into safe-haven assets amid continuing concerns over the economic fallout of the ongoing coronavirus outbreak. The S&P 500 finished the day lower by 1.2% while the Dow Jones Industrial Average retreated by 228 points. The 30-Year Treasury Yield, meanwhile, plunged to record lows. Lower yields were good news again for the defensive, yield-sensitive sectors.

The broad-based commercial Real Estate ETF (VNQ) gained 0.3% on the day and was the top-performing sector for the week. Existing home sales data this morning topped estimates as low mortgage rates and solid demographic-driven demand continue to provide a favorable tailwind for the residential real estate industry. Stay tuned for full coverage of this week's economic data in our Real Estate Weekly Outlook report published tomorrow morning. Real Estate Daily Recap U.S. equity markets stumbled into the weekend as investors piled into safe-haven assets amid continuing concerns over the economic fallout of the ongoing coronavirus outbreak.

The S&P 500 ETF ( SPY ) erased it's weekly gains, finishing the day lower by 1.2% while the Dow Jones Industrial Average ( DIA ) retreated by 228 points. The story of the day was the bid for Treasury bonds, sending the 10-Year Treasury Yield ( IEF ) lower by 5 basis points to close the day at 1.47% while the 30-year Treasury yield plunged to record lows. Lower yields were good news again for the domestic and yield-oriented sectors.

The broad-based commercial Real Estate ETF ( VNQ ) gained 0.3% on the day and was the top-performing equity sector for the week. Existing home sales data this morning topped estimates as low mortgage rates and solid demographic-driven demand continue to provide a favorable tailwind for the residential real estate industry. Existing sales - which account for roughly 90% of total home sales - are now higher ...