Without QE the treasuries tail will get even worse for the U.S. government. This QE isn’t about real estate, it is about the need to fund the government and keeping banks from failing due to the government sucking all liquidity out of the system.
One option: the FED can loosen regulations to allow banks to buy even more treasuries. Just remember that is how Silicon Valley and others got into trouble by holding treasuries that were underwater with longer durations.
commercial foreclosures could happen especially in the office space sector. That will only cause more issues for banks as they are now holding more illiquid assets.