Rising bond yields are triggering a tech sell-off, but S-Reits could be the casualty nobody notices
Singapore-listed Reits have underperformed blue-chip stocks by almost 30 percentage points so far this year
[SINGAPORE] Wall Street’s latest tech tumble is stealing the headlines again. Semiconductor stocks are taking a dive this week, with bond yields rising and oil prices climbing on renewed Middle East jitters.
The 30-year US Treasury yield on Tuesday (Aug 18) hit its highest level since June 2007, right before the global financial crisis. Meanwhile, 10-year yields are higher than before the first US-Israel strikes on Iran in late February.
Predictably, we are seeing a deluge of commentary about growth stocks and their well-known allergy to higher discount rates. The tech equities wreckage makes for good cinema: fast, brutal and very loud.
