Why the Drop in 10-Year Treasury Yields Matters to Commercial Real Estate Investors
Treasury Yields Drop as Powell Opens Door to Rate Cuts
A lower 10-year Treasury signals that a shift may be underway for commercial real estate investment.
The 10-year Treasury fell to its lowest level since mid-August after Powell hinted at rate cuts, reshaping financing costs, cap rates, and investor strategy.
Managing Director of Research and Public Relations at NAI Capital Commercial
The 10-year Treasury dropped to its lowest level since mid-August after Fed Chair Jerome Powell signaled the possibility of a rate cut. Yields across the curve moved lower, easing borrowing costs and fueling optimism in the market.
Powell cited ongoing inflation risks alongside a cooling labor market—an unusual mix that could prompt the Fed to act as early as September. For commercial real estate, a lower 10-year Treasury is key, directly impacting cap rates, financing, and investor strategy.
