The yield on the latest U.S. 30-year Treasury auction rose to 5.06%, the highest level since 2007, pushing long-term Treasury yields back above 5%. According to Odaily, the yield on the same maturity was about 2% at the start of 2022.
Analysts said higher long-term yields mean a higher risk-free rate, which raises discount rates for risk assets and puts structural pressure on high-risk assets such as Bitcoin. The current risk-free rate above 5% has increased the threshold for speculative capital allocation, while higher debt-financing costs tied to wider fiscal deficits have also sent a short-term risk-off signal to the market.
AI infrastructure investment is also intensifying competition for capital. Major technology companies continue issuing bonds to fund AI development and are competing with the U.S. government for market资金, which is pushing long-term rates higher. Market participants are watching the 5.20% level, this year’s May high, and a move above it could indicate further increases in long-term rates and tighter financial conditions.
Weatherly
