The yield on the 30-year U.S. Treasury bond auction has reached a new high since 2007, which may put pressure on risk assets such as Bitcoin

According to data from the Kobeissi Letter, the latest auction yield of the U.S. 30-year Treasury bond has risen to 5.06%, the highest level since 2007, pushing long-term U.S. Treasury yields back above 5%. In comparison, the yield on the same maturity Treasury bonds was about 2% at the beginning of 2022. Analysts believe that the rise in long-term yields indicates an increase in the risk-free rate of return, which will raise the discount rate for risk assets, creating structural pressure on high-risk assets such as Bitcoin.

The current risk-free rate above 5% has raised the threshold for speculative capital allocation, while the rising debt financing costs due to the expanding fiscal deficit have also sent risk-averse signals to the market in the short term. In addition, the surge in investment in artificial intelligence infrastructure is further intensifying competition for funds. Large technology companies continue to issue bonds to finance AI development, competing with the U.S. government for market funds, which further drives up long-term interest rates. The market is focused on the 5.2% peak reached in May of this year; if yields break through this level, it may indicate that long-term rates will continue to rise, tightening the financial environment further.