$DBS(D05.SG)$OCBC Bank(O39.SG)$UOB(U11.SG)$Amova-StraitsTrdg Asia REIT(CFA.SG)$Lion-phillip S-Reit(CLR.SG)$CSOP iEdge SREIT ETF S(SRT.SG)

Something interesting is observed today (at least till 1530hrs, 23 Jun 2026) for the Singapore market - both the bank and REIT sectors are showing strength concurrently! Normally, we would have expected them to move in opposite directions due to inverse correlation to interest rate. So then, what could be happening?

Firstly, the strength in SG banks is nothing unusual as the US "higher for longer" rate expectations holds and this supports the bank rally with the positivity in Net Interest Margins and earning visibility.

The part on the REIT defines the interest rate logic and I would like to offer my take.

When I looked at the US market at closing last night and the current futures (Dow Jones Future, NASDAQ 100 Future, S&P500 Future and VIX futures), it seems that there is a cautionary sentiment.

It is postulated that the apparent strength in REIT sector today is tactical rather than macro-driven, possibly a combination of the below:

(1) quarter end positioning by fund managers (window dressing)

(2) defensive rotation signals (rising VIX/weakening US futures)

(3) Attractive yields / yield spread

Well, I would be interested to know what you think. Do drop a comment below of your take and hope we can all learn together. Cheers!