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Toronto’s Bay Street, home to Canada’s financial district, is pictured in January, 2013. Sluggish corporate profits might force the Bank of Canada to reconsider its positive outlook for the rest of the year.
Toronto’s Bay Street, home to Canada’s financial district, is pictured in January, 2013. Sluggish corporate profits might force the Bank of Canada to reconsider its positive outlook for the rest of the year.
(MARK BLINCH/REUTERS)

REIT valuations baffle Bay Street as yields rise

The big news today: 10-year Treasury yields are spiking – again. This time they’re near 2.8 per cent, a level last seen in July, 2011, right before the U.S. saw its debt get downgraded.

On this side of the border, these spikes make many Canadians wonder the exact same thing: how badly have real estate investment trusts been hit?