According to The Kobeissi Letter, persistent high interest rates and the Federal Reserve's refusal to cut rates are pushing US 10-year Treasury yields toward 5 percent. Trade deals are also contributing to this upward pressure on yields. The Kobeissi Letter warns that unless there is a change in monetary policy or trade dynamics, the 10Y Note Yield could reach 5 percent. For cryptocurrency traders, rising yields typically signal tighter liquidity and higher opportunity costs, which can lead to increased volatility and downward pressure on digital asset prices. Source: The Kobeissi Letter on Twitter, May 26, 2025.

According to StockMKTNewz, Fed Governor Waller stated that the Federal Reserve will not participate in primary bond auctions, confirming a firm stance on monetary policy tightening (source: StockMKTNewz, May 22, 2025). This decision signals continued restraint in liquidity support, which may increase bond yields and potentially reduce risk appetite across financial markets, including the cryptocurrency sector. Traders should monitor volatility in both traditional and crypto markets, as constrained liquidity often leads to increased price swings and impacts capital flows into digital assets.

According to Mihir (@RhythmicAnalyst), 10-year Treasury yields have reversed their decades-long bear market trend post-COVID and recently bounced off a major support level, as indicated by his technical analysis. This technical bounce after two and a half years of consolidation suggests yields may move higher in the near term. Rising yields historically lead to tightening financial conditions, which can influence risk asset flows, including cryptocurrencies. Traders should monitor Treasury yield movements closely, as further increases could pressure crypto valuations by impacting liquidity and investor sentiment (source: Mihir, Twitter, May 19, 2025).