S-Reit investors need not fear rising rates

THE rise in the US 10-year Treasury yield is giving equity investors in the high growth US technology stocks the jitters. The technology-heavy Nasdaq fell over 10 per cent in early March from a year's high in mid-February.

The rise in the bond yield stems from fears over inflation escalating as the economy recovers amid huge fiscal stimulus and ultra loose monetary policy.

In Singapore, the 10-year government bond yield has also been rising. Today, it is at about 1.6 per cent compared with 0.9 per cent at the start of the year and 0.7 per cent in mid-May 2020.