#us10ytreasuryyieldhits19yearhigh
🇺🇸 The yield on U.S. 10-year Treasuries hits a 19-year high — a new test for crypto
The yield on 10-year U.S. Treasury notes reached 5.14% during the September 23 session, its highest level since July 2007, before easing back to around 5.11%, according to The Wall Street Journal.
Meanwhile, S&P Global’s September flash survey showed that U.S. economic activity is growing at the fastest pace in more than five years. Input costs rose at the fastest rate in nearly four years.
My view: Higher Treasury yields can increase borrowing costs and offer investors a more competitive income alternative. That creates a tougher environment for assets whose appeal depends heavily on future growth or price appreciation.
The reason for the move matters. Stronger economic activity can support corporate earnings, while ongoing cost pressures may squeeze margins and keep monetary policy restrictive. Both forces can act at the same time.
For crypto, I would watch the U.S. dollar, inflation-adjusted Treasury yields, and Bitcoin ETF flows. Rising yields, together with a firmer dollar and a cooling off in spot demand, would suggest further pressure on risk appetite. Steady inflows could help absorb that pressure.
The coming sessions should reveal whether the bond selloff continues and how crypto buyers respond. A single yield milestone provides limited information about Bitcoin’s next move.
Can crypto demand remain strong if Treasury yields stay above 5%?
#bitcoin #Macro
$NOM
$NIL
$XAUT
🇺🇸 The yield on U.S. 10-year Treasuries hits a 19-year high — a new test for crypto
The yield on 10-year U.S. Treasury notes reached 5.14% during the September 23 session, its highest level since July 2007, before easing back to around 5.11%, according to The Wall Street Journal.
Meanwhile, S&P Global’s September flash survey showed that U.S. economic activity is growing at the fastest pace in more than five years. Input costs rose at the fastest rate in nearly four years.
My view: Higher Treasury yields can increase borrowing costs and offer investors a more competitive income alternative. That creates a tougher environment for assets whose appeal depends heavily on future growth or price appreciation.
The reason for the move matters. Stronger economic activity can support corporate earnings, while ongoing cost pressures may squeeze margins and keep monetary policy restrictive. Both forces can act at the same time.
For crypto, I would watch the U.S. dollar, inflation-adjusted Treasury yields, and Bitcoin ETF flows. Rising yields, together with a firmer dollar and a cooling off in spot demand, would suggest further pressure on risk appetite. Steady inflows could help absorb that pressure.
The coming sessions should reveal whether the bond selloff continues and how crypto buyers respond. A single yield milestone provides limited information about Bitcoin’s next move.
Can crypto demand remain strong if Treasury yields stay above 5%?
#bitcoin #Macro
$NOM
$NIL
$XAUT
