According to The Kobeissi Letter, the latest US 20-year bond auction resulted in a 1.2 basis point tail, the largest since December, as reported by ZeroHedge. The high yield reached 5.047%, making it only the second time in history that a 20-year Treasury auction has cleared above 5%. This sudden and significant tail highlights persistent demand concerns and signals heightened risk sentiment in the broader bond market. For cryptocurrency traders, such a sharp rise in Treasury yields typically pressures risk assets and increases volatility in digital asset markets as liquidity conditions tighten. Source: The Kobeissi Letter via Twitter.

According to The Kobeissi Letter, the latest $16 billion auction of US 20-year Treasury bonds experienced unusually weak demand, resulting in a sharp rise in yields (Source: The Kobeissi Letter, May 21, 2025). This spike in yields reflects investor concerns over US debt appetite and signals tighter financial conditions, which historically triggers increased volatility in risk assets such as cryptocurrencies. Crypto traders should monitor bond yield trends closely, as further increases could pressure Bitcoin and altcoin prices through capital outflows and liquidity tightening.