U.S. 30-year Treasury bond auction yields hit new highs since 2007, which may put pressure on risky assets such as Bitcoin

According to KobeissiLetter data, the latest auction yield on U.S. 30-year Treasury bonds rose to 5.06%, the highest level since 2007, pushing the long-term U.S. bond yield back to 5%. For comparison, the yield on U.S. bonds for the same period at the beginning of 2022 was approximately 2%. Analysts believe that higher long-term yields mean an increase in risk-free yields, which will increase the discount rate of risky assets and put structural pressure on risky assets such as Bitcoin. The current risk-free rate of return of more than 5% has raised the threshold for the allocation of speculative funds, while the rising cost of debt financing caused by the expansion of fiscal deficits has also sent a hedging signal to the market in the short term. In addition, the artificial intelligence infrastructure investment boom is further intensifying competition for funds. Large technology companies continue to issue bonds to finance AI construction, compete with the US government for market funds, further pushing up long-term interest rates. The market is focused on the high of 5.2% in May this year. If yields exceed this level, it may mean that long-term interest rates will continue to rise and the financial environment will further tighten.