The U.S. 10-year government bond yield closed at 4.97% last weekend, rising 19 basis points during the week to reach its highest level since 2023, nearing the high seen in 2007. This trend has once again made long-term capital costs a central consideration for commercial real estate (CRE) underwriting, as it could increase borrowing costs and required returns, posing challenges for capital-intensive property sectors such as data centers, logistics, and multifamily housing. The market anticipates an approximately 70% probability of the Federal Reserve raising interest rates at its September 16 meeting.