The yield on the U.S. 30-year Treasury auction has hit its highest level since 2007, potentially putting pressure on risk assets such as Bitcoin.

According to data from the Kobeissi Letter, the latest auction yield on 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%. For comparison, the yield on the same-term U.S. Treasury bond stood at around 2% at the start of 2022. Analysts argue that the rise in long-term yields means an increase in the risk-free rate, which will raise the discount rate for risky assets, creating structural pressure on high-risk assets like Bitcoin. The current risk-free rate above 5% has raised the allocation threshold for speculative funds, while the rising cost of debt financing due to expanding fiscal deficits has also sent risk-off signals to the market in the short term. Additionally, the boom in artificial intelligence infrastructure investment is further intensifying competition for funds. Large tech companies continue to issue bonds to finance AI construction, competing with the U.S. government for market funds, which further pushes up long-term interest rates. The market is watching the 5.20% level, a high point hit in May this year. If yields break through this level, it could signal that long-term rates will continue to rise, leading to further tightening of financial conditions.