Bitcoin faces a $25B Treasury test after demand for US debt weakens
Summary
The Treasury’s November 10-year note auction drew weaker bidding and lower indirect participation than both October’s reopening and an August new issue, although it cleared at a lower yield than October’s. The $42 billion sale was fully subscribed, and bidder categories do not show whether foreign investors are exiting. A scheduled $25 billion 30-year bond sale will provide another measure of demand for long-term debt. If weak demand pushes yields higher and tightens financing, crypto investors may face reduced risk appetite; a single auction, however, does not establish that effect. The November refunding is expected to raise about $28 billion in new private cash, so the bond’s gross sale amount is not all new borrowing.
