The current pullback in the Singapore REIT (S-REIT) sector is a “healthy correction” rather than the start of a prolonged downturn. With the bulk of Singapore’s economy poised to recover this year – our 2021 GDP has been forecasted at 4% to 6% – now could be time for investors to accumulate more REITs at better valuations. Explaining the pullback With economic recovery in sight for much of the world and a global vaccine roll-out underway, the 10-year US Treasury yield has been quietly climbing in response to stronger economic growth prospects and the possibility of higher inflation. The yield on the benchmark 10-year US Treasury note is around 1.37% at this time of writing, its highest since February 2020. Given the close correlation in interest rate movement between US and Singapore, the yield for the Singapore 10-year bond has also risen in tandem to around 1.32%. This rise

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