<!–*/ */ /*–>*/ U.S. Treasury’s 10-year yield surged to a three-month high on renewed risk-on sentiments. Easing fears of trade war and global growth concerns, a decent earnings season, better-than-expected U.S. GDP growth rate for the third quarter and global easy money policies are fueling the equity rally. The S&P 500 has added 3.9% in the past month (as of Nov 11, 2019).  The rally gave a boost to long-term treasury yields. Since housing stocks are sensitive to interest rates, a sudden spike in long-term bond yields could negatively impact the space and caused a little correction. Apart from rising rate fear, downbeat home sales data also led to the slowdown in long-term bond yields. U.S. existing home sales, which make up about 90% of the total housing market, fell more than expected in September. Higher home prices seem to be the culprit (read: What’s Driving Housing ETFs Despite Subdued Sales?). Housing ETFs like iShares U.S. Home Construction ETF ITB and SPDR S&P Homebuilders ETF XHB gained 3.1% and 3.7%, respectively, in the past month, marking a slight underperformance compared to the broader market. Now, with trade deal talks doing roun...