$44 billion Treasury auction, $BTC lost one downside factor
4.894%. Early this morning, the $44 billion auction of 7-year U.S. Treasuries was settled, with the winning yield landing here, about 19 basis points below the 5.085% from the September 24 auction. The bid-to-cover ratio was 2.46, basically in line with the 12-month average of 2.48 — the funds that wanted to buy haven’t decreased, and the price is a bit cheaper too.
7-year Treasuries are the U.S. government’s medium-term borrowing, and they serve as a pricing reference for mortgages and corporate financing. Before the auction, the market was still worried that yields would push higher; the original text calls this a “tightening monetary policy environment,” but instead it eased off a bit.
$BTC is currently around $79,827.6, down 1.57% over 24 hours; the funding rate of +0.0053% is unchanged from normal, so longs are not rushing to add leverage. From the data, this is neutral to mildly bullish for BTC in the short term, and neutral for the broader market. In any case, the rates side didn’t add trouble; the weakness is still in the chart itself.
On the flip side: if upcoming inflation data pushes yields back above 5%, this view fails. Next, watch whether the 24-hour low of 79666.9 holds.
4.894%. Early this morning, the $44 billion auction of 7-year U.S. Treasuries was settled, with the winning yield landing here, about 19 basis points below the 5.085% from the September 24 auction. The bid-to-cover ratio was 2.46, basically in line with the 12-month average of 2.48 — the funds that wanted to buy haven’t decreased, and the price is a bit cheaper too.
7-year Treasuries are the U.S. government’s medium-term borrowing, and they serve as a pricing reference for mortgages and corporate financing. Before the auction, the market was still worried that yields would push higher; the original text calls this a “tightening monetary policy environment,” but instead it eased off a bit.
$BTC is currently around $79,827.6, down 1.57% over 24 hours; the funding rate of +0.0053% is unchanged from normal, so longs are not rushing to add leverage. From the data, this is neutral to mildly bullish for BTC in the short term, and neutral for the broader market. In any case, the rates side didn’t add trouble; the weakness is still in the chart itself.
On the flip side: if upcoming inflation data pushes yields back above 5%, this view fails. Next, watch whether the 24-hour low of 79666.9 holds.