Market Reacts to Tariff Talk

The possibility of a global trade war has had markets on the edge this week as the administration’s threats of tariffs on steel and aluminum were met with talk of retaliation in China and Europe. At the same time, suggestions that some countries will be spared from tariffs has had a calming effect. As a result, 10-year Treasury yields at 2.86 are down slightly for the week. We continue to see rather significant inconsistency in commercial real estate debt costs across capital sources.