REITs, Utilities extend rally as yields dive

AES

03/11/2023 15:25

** Shares of rate-sensitive real estate investment trusts
(REITs) and utility cos extended gains on Fri as benchmark
yields fell
    ** U.S. Treasury 10-year yield  US10YT=RR  fell to five-week
lows on Fri while two-year yields were at the lowest since early
September, after data showed U.S. job growth slowed more than
expected in October
    ** S&P 500 real estate index  .SPLRCR  last up 2.7% on Fri,
and has now gained nearly 9% amid 5-session run with almost all
components advancing 
    ** Biggest SPLRCR pct gainers on Fri include SBA
Communications Corp  SBAC.O , office property giant Boston
Properties  BXP.N , and Alexandria Real Estate Equities  ARE.N ,
which were all up between 5% and 6%
    ** S&P Utilities  .SPLRCU  sector last up 1.6% on the
session, extending gains to >6% amid its 5-session winning
streak
    ** AES Corp  AES.N  top SPLRCU performer, up about 7%, after
Q3 profit beat, clean energy funding grant, followed by American
Water Works  AWK.N , up about 5%, after UBS raises PT on the
stock
    ** SPLRCR now down 5% YTD, while SPLRCU off about 12% and is
easily the worst major S&P sector performer in 2023

 (Reporting by Chibuike Oguh in New York)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))