BGO: Insights

The Chief Economist: The 10-Year Yield Has An Anchor

Written by BGO | Aug 26, 2026, 4:05:55 PM

The 10-year Treasury yield has a long-run nominal-growth anchor near 4%, but persistent capital demand from AI investment and government borrowing alongside inflation and policy risks is keeping yields above that level, reinforcing financing discipline, income growth and asset selection as critical considerations for commercial real estate in today’s higher-rate environment.