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Rising U.S. Treasury yields pressure REITs like Realty Income by increasing borrowing costs and reducing returns.

Market News
30 Sep 2026
Seeking Alpha
View Source
Bearish
Rising U.S. Treasury yields pressure REITs like Realty Income by increasing borrowing costs and reducing returns.

Increasing U.S. Treasury yields are directly challenging income investments such as Real Estate Investment Trusts (REITs). Higher yields raise borrowing costs for leveraged investments, which squeezes net returns and threatens the sustainability of distributions. Realty Income, a notable REIT, is particularly sensitive to these yield changes and the related financing expenses. Investors should closely monitor Treasury yield trends to assess the risks and potential returns of income-focused investments in this environment.

Realty Income (O) offers a dividend yield of 5.91% and has a market cap of $52.17 billion as of Oct 01, 2026 00:51 WIB. Despite the pressure from rising U.S. Treasury yields mentioned in the article, the stock shows strong buying interest on Pluang with 99% of order activity on the buy side. The price is currently $54.45, down 0.76% in the last day, reflecting some market caution but sustained investor demand.

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