WS #15125
The 30-year Treasury yield hit 5.62%, the highest since 2002, while CMBS delinquencies reached 7.9%, the highest since early 2021. These indicators point to tightening financial conditions and stress in the commercial real estate market. The upcoming PCE inflation report will be critical in determining if the Fed can maintain its current policy stance or if further hikes are needed, adding volatility to rate-sensitive sectors.
Macroeconomic Pressure and Credit Stress
The 30-year Treasury yield hit 5.62%, the highest since 2002, while CMBS delinquencies reached 7.9%, the highest since early 2021. These indicators point to tightening financial conditions and stress in the commercial real estate market. The upcoming PCE inflation report will be critical in determining if the Fed can maintain its current policy stance or if further hikes are needed, adding volatility to rate-sensitive sectors.