Market Note for Binance – U.S. Treasury Update
Date: May 30, 2025
U.S. Treasury yields remained largely unchanged Friday ahead of key inflation data (PCE index) and amid renewed market stress over former President Trump's legal and policy moves to revive reciprocal tariffs.
Yields: 30-year rose slightly to 4.927%, 10-year held at 4.422%, and 2-year stayed at 3.939%.
Legal Update: A Federal Court backed Trump’s tariff stance, pausing a lower ruling. His team is also eyeing temporary 15% tariffs via the Trade Act of 1974.
Market Outlook: Investors expect ~50 bps in Fed rate cuts by year-end, but May marked the worst month for Treasuries in 2025, with broad selloffs.
Concerns: Rising U.S. deficits, long-end supply pressures, and reduced foreign demand for Treasuries are fueling uncertainty. Term premium could rise another 50 bps, per Citigroup.
Implication for Crypto Markets: Ongoing U.S. fiscal instability and inflation concerns may weaken dollar confidence — potentially bullish for alternative assets like Bitcoin.
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