Bond Yields Are Rising Globally and Cap Rates Have to Follow

The yield on the 10-year Treasury reached 4.80% on Tuesday, its highest level since early 2025. The 5-year Treasury, the benchmark for auto loans, touched 4.55%, its highest since October 2025. The 30-year hit 5.248% last month, the highest in about 19 years. Fighting in the Middle East pushed oil prices up and renewed inflation worries. Federal Reserve Chair Kevin Warsh signaled last Friday that the central bank may still need to raise its short-term rate in coming months if inflation stays elevated. The average 30-year fixed mortgage is near its highest level in a year...