Bond Yields Surge Amid US Selloff

Treasury Yield Spike Raises Concerns

The US bond market is issuing warning signs as the 10-year Treasury yield surged from 3.95% in October 2025 to nearly 4.3% this week, per Globe St. The rapid increase reflects investor unease over inflation, unstable US policy, and a growing inclination to sell America-linked assets. This shift impacts not only the financial sector but also broad economic activity, including commercial real estate (CRE) borrowing costs.

Policy Unpredictability Fuels Market Anxiety

Financial experts note that Treasurys, typically seen as a safe haven, are now buffeted by policy uncertainty. The unpredictable stance of the current US administration has prompted many investors to divest from American markets, putting downward pressure on bond prices and driving yields higher. Rising yields are making CRE borrowing more expensive, compounding industry uncertainty.

Tariffs and Inflation Drive the Trend

Inflation expectations are an additional driver behind rising bond yields. Continuous tariff threats—particularly those tied to the US’s international posture and its Greenland campaign—are producing both economic and psychological pressures. These factors are reinforcing the ‘sell America’ trend and keeping the 10-year Treasury yield elevated, despite traditionally risk-off market conditions.

Ongoing Uncertainty for CRE

Persistent economic uncertainty and the possibility of further tariffs are amplifying the upward pressure on bond yields. With the Federal Reserve’s stance appearing less dovish and macroeconomic data remaining solid, the bond market expects higher-for-longer yields. This environment, already complicating commercial real estate’s recovery trajectory, will continue weighing on CRE borrowing and investment until policy clarity returns.