The yield on the 10-year US Treasury bill rose to 5% and is now at 4.9% for the first time since 2007.
The cryptocurrencies They operate with a majority of losses of up to 1.5% this Thursday, October 19, pressured by the international context that does not leave risk assets in a good position. The increases of Bitcoin (BTC) and Solana (SOL) up to 2%.
How the rally in US bonds affects
The reason for this decline is the latest rise in bonds. He US Treasury bill yield The 10-year rate rose to 5% and now stands at 4.9% for the first time since 2007. Meanwhile, the 2-year Treasury yield remained stable at 5.22%, close to levels last recorded in 2006. Also worth noting is that the 5-year Treasury hit 4.937%, its highest level since 2007.
This is because the latest macroeconomic data coming from USA fueled the fears of a new rise in interest rates on the part of the Federal Reserve (Fed). Specifically, housing construction accelerated in September, although at a slower pace than expected, and retail sales rose 0.7% in the ninth month of the year, more than double the consensus forecast, thus reflecting consumer resistance to tightening monetary policy and other economic pressures.
Improvements in provincial bonds in dollars open a new menu for investors of up to 13%
Market outlook awaiting Powell
Markets continue to value at approximately 94% chance of rates remaining unchanged when the Fed announces your next monetary policy decision November 1stbut the probability of a rate hike in December increased after Tuesday’s data, according to CME Group’s FedWatch tool.
In this sense, several officials of the Federal Reserve indicated that the central bank could have finished raising rates, especially because the increase in reTreasury yields is contributing to the hardening of economic conditions. It should be noted that today the president of the Fed will speak, Jerome Powellwhose statements could shed more light on the matter less than two weeks before the Fed’s next move.
“Bitcoin is hovering near upper limits of its range recent as the optimism that the approval of a Bitcoin ETF It will occur before the end of the year. The rise after erroneous news about the approval of an ETF shows that the market is prepared to act once it is easier to access BTC. However, the fundamental factors that driving cryptocurrencies remain disparate. The macroeconomic backdrop is starting to turn positive for bitcoin as concerns about Treasury market liquidity mount, but the cryptocurrency use case has yet to make big strides,” said Edward Moya, senior analyst at OANDA markets.
Source: Ambito
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