Six months ago, the idea that a 10-minute speech by Donald Trump could impact Australian commercial property was laughable. Not any more. The policies of the new US administration are having a profound impact on interest rates in Australia, especially the 10-year bond rate. And that has implications for AREIT investors.
The following chart shows movements in the US 10-year bond rate over the last 12 months. See that spike in early November? That was the day of the President elect’s acceptance speech, which turned investment market opinions on their heads, in just 10 minutes.