The bond market may be sending a warning that investors can’t afford to ignore.
Earl Davis, head of fixed income and money markets at BMO Global Asset Management, believes the 30-year U.S. Treasury yield will inevitably move above 6% — and according to his comments on Bloomberg Surveillance, that could happen as soon as this month.
For me, the important part isn’t just the 6% number. It’s what happens across global markets if long-term borrowing costs keep climbing.
A sustained rise in Treasury yields can put pressure on equities, risk assets and especially speculative markets like crypto. Higher yields can make safer assets more attractive while increasing the cost of capital throughout the financial system.
Bitcoin and altcoins have already shown how sensitive liquidity conditions can be. If the 30-year yield pushes toward 6%, traders may need to rethink the idea that every market dip is automatically a buying opportunity.
I’m watching this closely because bonds often move before the bigger reaction appears elsewhere.
6% on the 30-year Treasury could become a major psychological and financial level.
The next move in crypto may depend not only on charts, but on what the bond market does next.