Treasury yields soar as Bitcoin holds near $87K and gold faces pressure
US Treasury yields surged to their highest levels in over two decades on Monday, as investors digested fresh economic data and awaited the Federal Reserve’s September meeting minutes. The benchmark 10-year Treasury yield rose 9 basis points to 5.349%, while the 30-year yield climbed to 5.703%, marking its highest since May 2002. The Institute for Supply Management reported that its services Purchasing Managers’ Index increased to 54.9 in September, slightly below August’s growth but still in line with expectations. The prices component of the index rose 1.4 points, reaching its highest 12-month average since March 2023.
Oil prices declined as Middle Eastern crude exports rebounded and G7 countries pledged to boost supplies. Brent crude futures settled 2.36% lower at $99.84 a barrel, while US West Texas Intermediate crude fell 2.41% to $88.91. The G7 agreed to release 100 million barrels of diesel and crude from emergency reserves, though uncertainty remains over the International Energy Agency’s 400 million-barrel release announced earlier. Saudi Aramco’s CEO noted that global stockpiles could take two years to replenish after emergency withdrawals, highlighting ongoing supply tightness.
Gold prices edged lower as a stronger dollar and elevated Treasury yields offset reduced expectations of a Federal Reserve rate hike in October. Spot gold rose marginally to $4,143.31 an ounce, while US gold futures settled 0.17% higher at $4,169.70. Higher interest rates typically reduce the appeal of non-yielding assets like gold, though it can still serve as an inflation hedge. Metals Focus forecasts gold to reach new record highs in 2027, with an average price of $5,330 an ounce next year.
Bitcoin remained near recent highs, trading around $85,680 with a 0.2% gain over the last 24 hours. Technical indicators suggested cooling short-term momentum, but corporate treasury activity and positive Bitcoin ETF flows supported its broader outlook. Strategy acquired 334 BTC for $28.7 million, while Metaplanet increased its holdings to 44,000 BTC. The market-implied year-end high on Kalshi rose to $95,000, with Bitcoin potentially testing $90,000 if current trends continue. Proposed CFTC crypto market rules could also provide a clearer federal framework for Bitcoin and other digital assets.