Treasury Yields Soar, Bitcoin Faces Pressure from Higher Rates
The U.S. Treasury yield has reached a 22-year high, climbing to 5.44% as the 30-year rate rose above historical levels. This increase in government yields has put pressure on risk assets, including Bitcoin, which fell near $84,300.
Strong business data from S&P Global reinforced expectations for tighter Federal Reserve policy, contributing to the rise in Treasury yields. The firm's flash U.S. Composite Purchasing Managers' Index rose to 58.4, indicating a faster rate of business activity expansion than previously thought.
The 30-year yield is now comparable to levels seen in June 2004, while the 10-year yield has moved above 5.1%. The increase in long-term borrowing costs is likely to continue, as investors demand greater compensation for holding longer-dated debt due to higher policy expectations.