"It's all running vertical now with 30-year Treasury yields on the cusp of hitting the 5% mark. For some context, 10-year yields in the US were at a low of 3.88% on Monday. This points to further liquidation in Treasuries and that's a sign that we are seeing distress in the parts of the market that we should not normally talk about i.e. funding, credit, repo," ForexLive's analyst Justin Low said in a market update discussing the implosion of the basis trade.
Low added that it's "all going sideways at the moment" as a sharp rise in yields itself can have a far-reaching impact on markets, housing and the economy.
Stocks drop, BTC under pressure
#CryptoTariffDrop #BTCvsMarkets
Futures tied to the S&P 500, Wall Street's benchmark equity index, fell 2% amid increased volatility in the Treasury market. Bitcoin fell briefly below $75,000 early today and has since recovered to trade near $76,000, CoinDesk data showed.
The MOVE index, which represents the options-implied 30-day price turbulence in the Treasury market, jumped to 140, the highest since October 2023, according to data source TradingView.
