Treasury Yields Soar to Two-Decade Highs as Bitcoin Nears $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 10-year Treasury yield climbed to 5.349%, while the 30-year yield hit 5.703%, marking the highest levels since 2002. The Institute for Supply Management reported that its services Purchasing Managers’ Index rose to 54.9 in September, slightly below August’s growth but in line with expectations.

Oil prices fell as Middle Eastern crude exports increased and G7 nations pledged to boost supplies, although geopolitical risks limited the decline. Brent crude futures settled 2.36% lower at $99.84 per barrel, while US West Texas Intermediate crude dropped 2.41% to $88.91. Despite the G7’s commitment to release 100 million barrels from emergency reserves, concerns remained over the actual supply increase, with global stockpiles expected to take two years to replenish.

Gold prices edged lower as a stronger dollar and elevated Treasury yields offset reduced expectations of a Federal Reserve rate hike in October. Spot gold was up slightly at $4,143.31 per ounce, while US gold futures settled 0.17% higher at $4,169.70. Expectations for a Fed rate hike in October declined to 22%, down from 70% a week earlier, with Metals Focus forecasting gold to reach new record highs in 2027, averaging $5,330 per ounce next year.

Bitcoin held near recent highs, trading at $85,680 after entering October with gains. While technical indicators suggested cooling short-term momentum, corporate treasury activity and positive Bitcoin ETF flows supported the cryptocurrency. Strategy bought 334 BTC for $28.7 million, and Metaplanet increased its holdings to 44,000 BTC. The market-implied year-end high on Kalshi rose to $95,000, with Bitcoin potentially testing $90,000 if the current positive setup continues.