Treasury Yields Soar: What Happens When They Hit a Decade-Old High?

Market strategist Rick Bensignor expects US Treasury yields to climb towards 6.07%, nearly double their current level of around 4.78%. This would take yields back to a level last seen in April 2000, when Bitcoin didn't exist.

Bensignor points to a multi-year uptrend line and a 200-week moving average as indicators that rates will continue to rise. The strategist also notes that the historical range for Treasury yields is wide, with a peak of 15.8% in the early 1980s and a record low near 40 basis points.

Higher Treasury yields could have significant implications for Bitcoin, which has never traded through a market like this before. Rising yields typically pull capital towards safer assets and away from speculative ones, putting pressure on Bitcoin's narrative as a hedge against US debt.

However, Bensignor argues that yields can rise for different reasons, such as inflation or resilient growth, which could maintain Bitcoin's scarcity pitch even in the face of higher yields.