Bank stocks are expected to have annual losses due to higher interest rates, causing selling pressure on bank shares and a selloff in the Treasury market. Banks are facing lower yields on Treasury bonds and have significant exposure to commercial property loans that may be difficult to refinance. However, the industry's reserves are at their highest level in 30 years, and banking reforms since the 2008 financial crisis have strengthened the industry's ability to handle potential credit losses. Regional banks, in particular, have increased their exposure to commercial real estate, raising concerns about the impact of higher interest rates or a recession. The increase in long-term Treasury yields has caused U.S. bond market returns to decline, with the possibility of the 10-year Treasury yield reaching 5% or higher this year.