$125 Billion Treasury Auctions to Test Bond Demand and Bitcoin

The US Treasury is set to hold three auctions from August 11 to 13, totaling $125 billion. This comes amidst rising inflation and a potential increase in yields.

According to the source, the Treasury's par-yield curve showed 3-year, 10-year, and 30-year yields at 4.25%, 4.65%, and 5.19% respectively as of August 7. Bitcoin's price was $64,928.71 on August 9.

The auctions will test bond demand and potentially put pressure on Bitcoin if several conditions are met: inflation pushes yields higher, auction metrics indicate softer demand, yields remain elevated, and Bitcoin falls in the same event window.

New York Fed research found that Bitcoin is broadly disconnected from monetary and macro news in its historical sample, suggesting that the Treasury auctions should be viewed as a test of conditions rather than an automatic sell signal for Bitcoin.