My understanding is that yields used for valuations are not...

My understanding is that yields used for valuations are not directly related to interest rates in general. Valuers look at actual sales to see what yield is effectively being paid by buyers and then use this market information to apply a rate to unsold buildings.

This presumably means that market yields are based on both expected return rates and also the economic projections of the buyers. This could mean that property yields are to an extent anchored a little lower by future growth expectations or even the rising replacement costs for new buildings.

Which all means I really struggle to assess where things will go! We will have to wait and see but I agree, whatever reduction comes will be amplified by the gearing in COF and any other REIT with debt.