U.S. 30-year Treasury yields hit 2007 highs, increasing competition for capital with risk assets like equities and crypto.
U.S. Treasury yields are climbing, with the 30-year yield reaching its highest level since 2007. This rise intensifies competition for capital, historically pressuring stocks and other risk assets like bitcoin.
Historical patterns show sharp yield increases often precede market turbulence. The 1987 Black Monday crash, triggered by rising yields, saw the Dow Jones Industrial Average plummet 22.6% in a single day. Current trends echo the multi-decade uptrend in yields that began in the late 1950s.
If Wednesday’s U.S. CPI data exceeds estimates, yields may rise further, reinforcing higher-for-longer Federal Reserve rate expectations. Unlike stocks, bitcoin lacks earnings or cash flow, complicating its valuation amid shifting yield dynamics.