The market is going down on an interest rate issues, specifically real-estate related.
We can see below that for the last 10 days, the 20DMF selling pressure has closely followed the selling pressure on VNQ (and the buying on SRS.)
However, T-Bonds continue to attract money (safe haven trade, with the Fed to backstop sell-offs)
Since banks borrow at 0%, we could think that they would make a killing by lending at an increased rate.
However I think that banks still own much real-estate that they did not sell yet. Increase rates mean that properties values diminish. But who really cares: they are not marked to market anyway.
Pascal
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