BlockBeats News, July 20th, according to Kobeissi Letter data, the latest auction yield of the 30-year US Treasury bond rose to 5.06%, reaching the highest level since 2007, pushing the long-term US bond yield back above 5%. By comparison, the yield on the equivalent maturity US Treasury bond was around 2% at the beginning of 2022.

Analysts believe that the rise in long-term yields implies an increase in risk-free rates, which will raise the discount rate for risk assets, creating structural pressure on high-risk assets such as Bitcoin. The current risk-free rate of over 5% has raised the allocation threshold for speculative funds, and the rising cost of debt financing due to the expansion of the fiscal deficit has also sent a risk-off signal to the market in the short term.

In addition, the artificial intelligence infrastructure investment frenzy is further intensifying fund competition. Large tech companies continue to issue bonds to finance AI development, competing with the US government for market funds, further driving up long-term interest rates. The market is watching the high point of 5.20% in May this year. If the yield breaks through this level, it may signal a further increase in long-term rates and a further tightening of the financial environment.