Treasury Yields Surge to 4.85%, Raising Risks for Crypto Ahead of FOMC

The US Treasury's $6 billion buyback of 10- to 20-year Treasuries has sparked a surprise increase in yields, sending the 10-year yield to 4.85% for the first time since 2023.

This move was intended to ease pressure in the bond market by reducing supply and supporting bond prices. However, the opposite occurred, with yields rising despite the buyback.

Analysts at Kobeissi Letter predict that the 10-year Treasury yield will move above 5% by next week, citing a huge selling pressure in the bond market.

Rising Treasury yields are seen as a warning sign of increased volatility and uncertainty in the US economy. This could tighten financial conditions further and weigh on crypto through the rest of the monthly cycle.