# U.S. Treasury Average Yield Breaks Above 5
According to Bloomberg data, the average yield on the U.S. Treasury bond market—at a size of $32 trillion—has risen to 5.05%. The global sovereign bond average yield is hovering just below 4%, the highest level since 2007.
This isn’t about crypto, but it determines the discount rate for all risk assets. If the cash side can earn 5%, the patience required to hold funds on-exchange to pick up highly volatile assets will be repeatedly drained. The Fear & Greed Index is still in the Greed zone at 71, and sentiment clearly hasn’t caught up with the interest-rate changes.
A falsifiable way to read it: if long-end yields keep climbing, any rebound in low-quality (alt) coins will rely more on specific narratives rather than a broad-based rally.
$AERO $PENGU $PHA
According to Bloomberg data, the average yield on the U.S. Treasury bond market—at a size of $32 trillion—has risen to 5.05%. The global sovereign bond average yield is hovering just below 4%, the highest level since 2007.
This isn’t about crypto, but it determines the discount rate for all risk assets. If the cash side can earn 5%, the patience required to hold funds on-exchange to pick up highly volatile assets will be repeatedly drained. The Fear & Greed Index is still in the Greed zone at 71, and sentiment clearly hasn’t caught up with the interest-rate changes.
A falsifiable way to read it: if long-end yields keep climbing, any rebound in low-quality (alt) coins will rely more on specific narratives rather than a broad-based rally.
$AERO $PENGU $PHA
