⚠️ $UST yields climbing again — bond selloff back on.
What's actually happening:
Investors are dumping US government bonds → prices crash → yields spike.
The math is simple:
You buy a bond for $100, it pays $5/year = 5% yield.
Price drops to $90, still pays $5 → now 5.56% yield.
Price down = yield up.
Why this matters for your bags:
When Treasury yields rip higher, safe assets start looking juicy. Capital rotates OUT of risk.
That means:
📉 Equities get hit
📉 Emerging markets bleed
📉 Crypto catches a bid... downward
💵 EM currencies crater
💰 Borrowing costs moon
For crypto specifically:
If boomers can lock in 5%+ on Treasuries with near-zero risk, why would they ape into $BTC or some degen altcoin?
Demand for risk assets dries up fast.
But context matters:
Yields rising ≠ automatically bad.
Are they rising because:
✅ Growth expectations improving?
❌ Inflation fears returning?
❌ Fiscal crisis brewing?
The WHY changes everything.
Bottom line:
When you see "bond selloff resumes, yields up" — translate that to:
"Investors want more return to hold US debt."
Then figure out why. That's where the alpha is.
What's actually happening:
Investors are dumping US government bonds → prices crash → yields spike.
The math is simple:
You buy a bond for $100, it pays $5/year = 5% yield.
Price drops to $90, still pays $5 → now 5.56% yield.
Price down = yield up.
Why this matters for your bags:
When Treasury yields rip higher, safe assets start looking juicy. Capital rotates OUT of risk.
That means:
📉 Equities get hit
📉 Emerging markets bleed
📉 Crypto catches a bid... downward
💵 EM currencies crater
💰 Borrowing costs moon
For crypto specifically:
If boomers can lock in 5%+ on Treasuries with near-zero risk, why would they ape into $BTC or some degen altcoin?
Demand for risk assets dries up fast.
But context matters:
Yields rising ≠ automatically bad.
Are they rising because:
✅ Growth expectations improving?
❌ Inflation fears returning?
❌ Fiscal crisis brewing?
The WHY changes everything.
Bottom line:
When you see "bond selloff resumes, yields up" — translate that to:
"Investors want more return to hold US debt."
Then figure out why. That's where the alpha is.
