Bond Market Turmoil Sends Investors Scrambling for Gold and Bitcoin
The bond market has been experiencing turmoil in recent days, which has led to an increase in the prices of gold and Bitcoin. Investors are responding to concerns about the value of the U.S. dollar and a shakeup in the bond market.
Bitcoin's price neared $80,000 earlier this week, a 22% surge after hovering below $65,000 for months. This came at the same time as the Treasury Department announced it would double the maximum size of its bond buyback from $2 billion to $4 billion using its general account.
Long-term bond yields have hit their highest levels since 2007, which has raised concerns about how Washington will manage the growing cost of financing the debt. The government's efforts to reduce borrowing costs while deficits climb are also causing apprehension among investors.