Treasury Yields Hit Decades Highs Bitcoin Holds Near 87K
US Treasury yields surged to their highest levels in over two decades on Monday, as investors reacted to new economic data and anticipated the release of the Federal Reserve's September meeting minutes. The benchmark 10-year Treasury yield climbed 9 basis points to 5.349%, while the 30-year yield rose more than seven basis points to 5.703%. This movement followed a report from the Institute for Supply Management showing that its services Purchasing Managers’ Index rose to 54.9 in September, slightly below August's growth rate but in line with expectations.
Oil prices dropped as Middle Eastern crude exports increased and G7 nations pledged to boost supplies, though geopolitical risks limited the decline. Brent crude futures fell 2.36% to $99.84 a barrel, while US West Texas Intermediate crude declined 2.41% to $88.91. Despite the G7's agreement to release 100 million barrels of diesel and crude from emergency reserves, uncertainty remained over the actual supply. Saudi Aramco's CEO noted that global stockpiles could take two years to replenish after emergency withdrawals.
Gold prices edged lower due to a stronger dollar and elevated Treasury yields, despite reduced expectations of a Fed rate hike in October. Spot gold was up slightly at $4,143.31 an ounce, while US gold futures for December delivery settled 0.17% higher at $4,169.70. Traders priced in an 82% probability that the Fed would leave rates unchanged at its next meeting, down from a 70% chance a week earlier. Metals Focus predicted gold would reach new record highs in 2027, forecasting an average price of $5,330 an ounce next year.
Bitcoin held near recent highs after entering October with gains, although technical indicators suggested cooling short-term momentum. The cryptocurrency was up 0.2% in the last 24 hours, trading near $85,680. Corporate treasury activity supported Bitcoin's broader backdrop, with Strategy buying 334 BTC for $28.7 million and Metaplanet increasing its holdings to 44,000 BTC. Bitcoin ETF flows remained positive, with $164.22 million of net inflows over one day and $226.41 million over seven days. The market-implied year-end high on Kalshi rose to $95,000, with Bitcoin potentially testing $90,000 if current positive trends continue.