A few weeks ago, we nudged up our Treasury yield forecasts for year-end 2021 and 2022, to 1.5% and 1.75% respectively. While intra-day yields exceeded 1.6% at one point last week, we don’t expect a continuation of those rises this year. And the bigger picture is that, with real estate enjoying a historically large yield gap over bonds, we see little cause for concern over valuations in the next few years.
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