US–Iran geopolitical tensions continue to escalate, keeping oil prices elevated and triggering a strong sell-off in the US bond market in the most recent trading session. The yield on US Treasury notes with a 10-year maturity jumped by 11 basis points to 5.27%, the highest level in 19 years, while the 30-year term reached 5.55%.
Rising energy prices are bringing back fears of global inflation, reversing earlier optimistic expectations. Traders now have to increase bets on the scenario in which the US Federal Reserve (Fed) will continue tightening monetary policy to rein in prices.
This spike in yields quickly spread to Asia’s bond markets, causing futures contracts in Australia and New Zealand to weaken across the board. The US dollar strengthened, while capital flows into equities and other traditional financial assets faced significant outflow pressure.
For the crypto market, record-high non-risk yields are draining liquidity and reducing appetite for risk assets. $BTC and the entire market may continue to face short-term adjustment pressure as cautious sentiment prevails.
#Fed #BondYields #Geopolitics
Rising energy prices are bringing back fears of global inflation, reversing earlier optimistic expectations. Traders now have to increase bets on the scenario in which the US Federal Reserve (Fed) will continue tightening monetary policy to rein in prices.
This spike in yields quickly spread to Asia’s bond markets, causing futures contracts in Australia and New Zealand to weaken across the board. The US dollar strengthened, while capital flows into equities and other traditional financial assets faced significant outflow pressure.
For the crypto market, record-high non-risk yields are draining liquidity and reducing appetite for risk assets. $BTC and the entire market may continue to face short-term adjustment pressure as cautious sentiment prevails.
#Fed #BondYields #Geopolitics