Singapore REITs - UOB Kay Hian 2023-10-05: Bond Yields Being Held Hostage By Political Gridlock

• We cut our target prices for S-REITs by an average of 5.1% after adjusting our risk-free rate higher by 25bp. We see opportunities to accumulate CapitaLand Ascott Trust, Far East Hospitality Trust, Frasers Logistics & Commercial Trust, Keppel REIT, Lendlease REIT and Mapletree Industrial Trust on current share price weakness.
• - Read this at SGinvestors.io -
• We postulate that the recent spike in US government bond yields is caused by concerns over a prolonged government shutdown, rather than consensus view of higher inflation. Government bond yields could remain elevated till mid-November.

A convenient short-term compromise.

• - Read this at SGinvestors.io -
• House Speaker Kevin McCarthy obtained the required two-third majority to pass the bill with support from democrats but angered hardliners within the Republican Party in the process.
• The stopgap measure kicked the can down the road for a more decisive showdown on 17 Nov 23 (45 days later).

Unprecedented ousting of House Speaker.

• Read more at SGinvestors.io.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-10-05 SGinvestors.io

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