Treasury Yields Soar to 20-Year Highs While Bitcoin Holds Near $87K
US Treasury yields reached their highest levels in over two decades on Monday, driven by fresh economic data and anticipation of the Federal Reserve’s September meeting minutes. The benchmark 10-year yield climbed to 5.349%, while the 30-year yield hit 5.703%, both peaks not seen since 2002. This rise followed the Institute for Supply Management’s report that its services Purchasing Managers’ Index increased to 54.9 in September, though slightly below August’s growth rate. Investors are now awaiting the Fed’s September meeting minutes, with traders pricing in an 82% chance of no rate hike in October.
Oil prices dropped as Middle Eastern crude exports surged and G7 nations committed to boosting supplies. Brent crude futures fell 2.36% to $99.84 per barrel, while US West Texas Intermediate crude declined 2.41% to $88.91. Despite these declines, geopolitical risks and tight supply levels kept downward pressure limited. Saudi Aramco’s CEO warned that crude and refined fuel supplies could remain strained, with stockpiles potentially taking two years to recover.
Gold prices saw a slight dip as a stronger dollar and elevated Treasury yields offset reduced expectations of a Fed rate hike in October. Spot gold edged up 0.02% to $4,143.31 an ounce, while US gold futures rose 0.17% to $4,169.70. Analysts predict gold could reach record highs in 2027, with an average price forecast of $5,330 next year.
Bitcoin remained near recent highs, trading at $85,680, though technical indicators suggested cooling short-term momentum. Corporate treasury activity and positive Bitcoin ETF flows supported the cryptocurrency’s broader outlook. Strategy acquired 334 BTC for $28.7 million, and Metaplanet increased its holdings to 44,000 BTC. Proposed CFTC crypto market rules could also provide a clearer regulatory framework for Bitcoin and other digital assets.