Bitcoin faces a $25B Treasury test after demand for US debt weakens
The thirty-year sale follows weaker ten-year participation, with Bitcoin’s risk tied to yields and financing conditions. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Treasury's Nov. 10 sale of $42 billion in 10-year notes drew weaker bid coverage and indirect participation than October's auction, despite clearing at a lower yield. That leaves Bitcoin investors watching whether today's long-bond sale makes financing more expensive.
Treasury has scheduled a $25 billion sale of 30-year bonds for Nov. 12 at 1 p.m. Eastern. Its result will offer another reading on demand for long-term government debt.
Related ReadingThe November 10-year auction cleared at a high yield of 5.02%, down from 5.3% at October's reopening. But its bid-to-cover ratio fell to 2.46 from 2.77, indicating less bidding relative to the amount awarded. The yield measures the return accepted by buyers; coverage describes the volume of bidding.
Indirect bidders received about 61.2% of November's competitive awards, compared with 80.3% in October. These shares exclude noncompetitive allocations and Federal Reserve add-ons.
The size comparison matters. October's $39 billion sale reopened the August note, while November offered a new security. August provides a same-size comparison: its $42 billion new issue drew 2.53 bid coverage and approximately 76.7% indirect participation. It cleared at 4.68%, below November's yield.
November drew weaker participation on both measures against each comparator. August matches its offering size and new-issue status, although the securities and market conditions differ.