US Treasury Yield Hits 2007 Highs as Bitcoin Struggles
The US Treasury yield on the 10-year note climbed to its highest level in nearly two decades, reaching 5.18% on Thursday. This marks a significant increase of 70 basis points this month and has reached levels not seen since July 2007.
As bond yields rise, they make government bonds more attractive, which can weigh on non-yielding assets such as Bitcoin. However, BTC has extended its August rally, challenging bearish predictions tied to its traditional four-year cycle.
The price of Bitcoin struggled to reclaim $84,500 after briefly falling below $83,000 during US hours. Meanwhile, Ondo Finance's token (ONDO) was among the top-performing altcoins, rising back to the psychological $0.5 level and reaching a milestone not seen since December 2025.
The rally in ONDO comes as BlackRock-backed Ondo Intelligent Portfolios launched on Thursday, allowing non-US users to buy tokenized shares in diversified portfolios on Ethereum and BNB Chain. Mohamed A. El-Erian noted that Japanese foreign exchange intervention typically involves selling US securities to buy Yen, potentially adding yield pressures to an already sensitive Treasury market.