REITs And Utilities Dive As Yields Jump

Waning worries on the trajectory of global economic growth sent US equity markets to another week of record highs and Treasury yields surging to four-month highs.
Good news is bad news for the long-outperforming defensive and yield-sensitive sectors, including real estate and utilities. REITs dipped more than 3% on the week.
Rates up, REITs down? The paradigm that bedeviled real estate investors for much of the past three years showed hints of an unwelcome return this week.
The high-flying homebuilders, which have become increasingly rate-sensitive over the past 18 months, dipped more than 5% while Zillow, Realogy, and Redfin surged double digits.
Real estate earnings season was generally better-than-expected with another quarter of strong results from the residential REITs. More than half of REITs raised full-year guidance.