Bitcoin holds $78,000 as global bond yields hit 16-year highs
In brief
- Global bond yields hit highest level since 2008 financial crisis
- Japan's 10-year JGB surged to 3% for first time since 1996; 30-year topped 4.18%
- Bitcoin remains flat near $78,000 amid broader market selling pressure
- US Treasury Secretary Bessent signals future FIMA facility use
- S&P 500 futures sold off 0.3%; oil prices rose above 2%
Bond Market Rout Reshapes Risk Landscape
Global long-term bond yields are now at their highest level since 2008 as major sovereigns face mounting pressure. Japan's move proved particularly striking: the 10-year JGB surged to 3% for the first time in nearly three decades, while the 30-year JGB topped a record 4.18%.
Stateside, the 10-year US bond yield also surged to a new multi-year high of 4.78%. The moves reflect a structural shift in how markets price growth and inflation expectations across major economies.
Robin Brooks, senior fellow at the Brookings Institution, captured the severity of Japan's predicament: "For the past two years, Japan has been in a 'Liz Truss' bond market crisis whereby its currency falls even as government bond yields go ever higher. We've never had a major G10 sovereign experience something like this and it's deeply destabilizing."
Bitcoin Holds Ground as Equities Stumble
Bitcoin has been trading sideways near the $78,000 mark, following a minor corrective decline from its morning high close to $79,000. The crypto asset's relative stability contrasts sharply with equity market weakness: S&P 500 index futures sold off by 0.3% on Tuesday and hovered around 7,660, the lowest level since August 4.
Elsewhere, oil prices rose more than 2%, with WTI around $88 per barrel and Brent above $92. The mixed signals across asset classes reflect investor uncertainty about how central banks will respond to surging yields.
Treasury Policy Signals FIMA Facility Ahead
US Treasury Secretary Scott Bessent announced that the maximum size of debt buyback transactions would be increased to $4 billion from September. More significantly, Treasury Secretary Scott Bessent hinted at the future use of the FIMA facility in August, a move that industry observers like Arthur Hayes have long anticipated. Arthur Hayes has argued that the Fed will eventually use its Foreign and International Monetary Authorities (FIMA) repo facility to manage currency and debt pressures.
For Bitcoin traders, the $76,000-$82,000 range is identified as the key battleground for the coming weeks. Cointelegraph previously reported on a thick patch of resistance between the current spot price and $86,000, suggesting limited upside momentum in the near term.
