Treasury Yield Spikes to 19-Year High, Slams Non-Yielding Assets

The US Treasury yield crossed 5.3% on August 17 for the first time since June 2007, marking an unusual move in the macro picture.

Soft economic data should have pulled long yields lower, but the 30-year Treasury yield continued to climb instead, reaching as high as 5.314% intraday and putting it on track for its first close above 5.3% in nineteen years.

Crypto-collateralized lending has declined by $22.53 billion from its peak, reducing the leftover credit overhang that Bitcoin has to absorb.

The stress test is happening near a live market level, with Bitcoin trading as high as $64,610.01 on August 17.