Treasury Bond Auctions Put $125 Billion Stress Test to Bitcoin

The US Treasury is set to auction off $125 billion in bonds over three days starting August 11, which could have implications for Bitcoin's price. The auctions will take place amid rising yields, with the 10-year and 30-year bond sales scheduled for August 12 and 13 respectively. Inflation data will be released just hours before each sale, providing a test of market demand.

The Treasury's refunding plan includes $58 billion in 3-year notes on August 11, followed by $42 billion in 10-year notes on August 12, and $25 billion in 30-year bonds on August 13. The auctions will settle on August 17, with about $96.3 billion of the total refinancing privately held debt maturing on August 15.

According to New York Fed research, Bitcoin has historically been disconnected from monetary and macro news, suggesting that the Treasury auctions may not have a direct impact on its price. However, if yields continue to rise and demand for bonds weakens, it could put pressure on Bitcoin's value in the same event window.