U.S. 30-year Treasury auction yield hits 5.06%, highest since 2007

Odaily reported that the latest 30-year U.S. Treasury auction yield rose to 5.06%, the highest level since 2007, pushing long-term Treasury yields back above 5%. At the beginning of 2022, the yield on the same-maturity Treasury was around 2%. Analysts believe that rising long-term yields indicate an increase in the risk-free rate, which raises the discount rate for risk assets, putting structural pressure on high-risk assets like Bitcoin. With the risk-free rate now above 5%, the threshold for speculative capital allocation has been raised. Meanwhile, increased fiscal deficits are driving up debt financing costs, sending a risk-off signal to the market in the short term.

Additionally, the AI infrastructure investment boom is intensifying competition for capital. Large tech companies are continuously issuing bonds to finance AI construction, competing with the U.S. government for market funds, further pushing up long-term interest rates. The market is eyeing the 5.20% high recorded in May this year. If yields break through this level, it could signal a continued increase in long-term interest rates and further tightening of financial conditions.