Treasury Yields Surge to New Highs: Fed Yield-Curve Control Debated Amidst Rising Borrowing Costs

US Treasury yields have surged to new highs, reaching 4.74% on August 21 for the 10-year benchmark, while the 2-year and 30-year yields climbed to 4.24% and 5.27%, respectively.

The increased borrowing costs have sparked debate over whether the Federal Reserve may consider yield-curve control in response.

However, the Treasury has clarified that its recent decision to double long-bond buybacks does not constitute quantitative easing (QE) or yield control.

In a surprising move, Bitcoin rose above $78,000 during this period as gold strengthened and the dollar weakened. Analysts suggest that lower real yields and stronger dollar liquidity could support crypto prices, presenting potential upside for investors.