According to The Kobeissi Letter, today’s US Treasury bond auction exhibited weak demand, resulting in a high yield of 5.047%, surpassing the anticipated 5.035% (source: The Kobeissi Letter, Twitter, May 21, 2025). This indicates investors are seeking higher returns due to concerns about bond market stability. For crypto traders, this bond market weakness signals potential capital shifts into risk assets, possibly increasing volatility and trading volume in top cryptocurrencies like Bitcoin and Ethereum.

According to The Kobeissi Letter, the recent $16B auction of US 20-year Treasury bonds had a significant impact on financial markets, causing yields to soar unexpectedly. Typically, US Treasury auctions have little effect on market dynamics, but today's weak demand and rising yields signal heightened investor caution and uncertainty about long-term debt. For cryptocurrency traders, such a sharp increase in bond yields often leads to volatility in risk assets, including Bitcoin and Ethereum, as investors may rotate out of crypto and into higher-yielding government securities. This market movement could influence short-term trading strategies and liquidity in the crypto space. (Source: The Kobeissi Letter, Twitter, May 21, 2025)