Svmuu News: The yield on the latest auction of 30-year U.S. Treasury bonds rose to 5.06%, the highest level since 2007, pushing long-term U.S. Treasury yields back above 5%. In early 2022, the yield on U.S. Treasuries with the same maturity was approximately 2%.Analysts believe that rising long-term yields signal an increase in the risk-free rate, which will raise the discount rate for risk assets and create structural pressure on high-risk assets such as Bitcoin. The current risk-free rate of over 5% has raised the threshold for speculative capital allocation, while rising debt financing costs driven by expanding fiscal deficits are also sending a risk-aversion signal to the market in the short term.
Furthermore, the investment boom in AI infrastructure is intensifying competition for capital. Major tech companies continue to issue bonds to finance AI development, competing with the U.S. government for market funds and further driving up long-term interest rates.The market is watching the 5.20% level—the high point reached in May of this year. If yields breach this level, it could signal that long-term interest rates will continue to rise, leading to a further tightening of financial conditions.