Treasury Yields Surge to 20-Year Highs Bitcoin Holds Near $87K
US Treasury yields surged to their highest levels in over 20 years on Monday, driven by fresh economic data and anticipation of the Federal Reserve’s September meeting minutes. The 10-year Treasury yield climbed to 5.349%, while the 30-year yield hit 5.703%, marking the highest rates since 2002. The Institute for Supply Management’s services Purchasing Managers’ Index rose to 54.9 in September, slightly below August’s growth but still in line with expectations. Investors are now awaiting the Fed’s September meeting minutes, released Wednesday, with traders pricing in an 82% chance of no rate hike in October.
Oil prices declined as Middle Eastern crude exports increased and G7 countries pledged to boost supplies. Brent crude futures fell 2.36% to $99.84 a barrel, while US West Texas Intermediate crude dropped 2.41% to $88.91. Despite these declines, geopolitical risks and tight supply conditions limited further drops. Saudi Aramco’s CEO, Amin Nasser, warned that global stockpiles could take two years to replenish after emergency withdrawals, with US Strategic Petroleum Reserve inventories hitting their lowest level since October 1982.
Gold prices edged lower due to a stronger dollar and elevated Treasury yields, which reduced the appeal of non-yielding assets. Spot gold was up slightly at $4,143.31 an ounce, while US gold futures settled 0.17% higher at $4,169.70. Expectations for a Fed rate hike in October dropped to 22%, down from 70% a week earlier, following weaker employment data. However, Metals Focus forecasts gold reaching new record highs in 2027, with an average price of $5,330 an ounce next year.
Bitcoin held near recent highs, trading at $85,680, despite technical indicators suggesting cooling short-term momentum. Corporate treasury activity and Bitcoin ETF inflows continued to support the cryptocurrency, with $164.22 million in net inflows over one day and $226.41 million over seven days. Strategy bought 334 BTC for $28.7 million, while Metaplanet increased its holdings to 44,000 BTC. Proposed CFTC crypto market rules could provide a clearer federal framework for Bitcoin, Ethereum, and registered crypto exchanges.