Treasury Yields Approach 5%, Tightening CRE Financing

The 10-year U.S. Treasury yield rose to about 4.97% for the week, nearing 5% and marking the highest level since 2023, with a global bond selloff lifting long-term borrowing costs. This heightens CRE financing costs and tightens underwriting, particularly affecting data centers, logistics, and multifamily sectors, and could complicate refinancing for maturing loans as debt and equity pricing rise. Traders are eyeing the August CPI print and the Fed meeting on Sept. 16, as a hotter inflation reading could push rates higher and sustain tighter capital conditions. While 5% is not a magic barrier, a sustained move near that level would keep financing costs restrictive and shape CRE deal dynamics until yields retreat.