Renewed geopolitical tensions involving Iran have pushed oil prices higher, adding inflationary pressure and complicating the outlook for monetary policy, according to Ryan Severino, chief economist and head of U.S. research at BGO, in the latest edition of The Chief Economist.
Higher energy prices have contributed to elevated government bond yields in the United States, Canada, the United Kingdom, the Eurozone and Japan.
Despite the increase in risk-free rates, property yields across those markets have generally moved relatively little, according to BGO. The firm said expectations for rental and income growth, improving liquidity in some markets and adjustments to investor return requirements have absorbed much of the pressure from higher bond yields.
The response has varied by market, with improving com
