Impact of Decline in US Government Bond Yields on Global Finance
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I will analyze the yields of US two-year and five-year government bonds:
A 10 basis point (0.1%) decline in the yields of US two-year (five-year) government bonds usually reflects market expectations of economic growth slowdown or monetary policy easing. The impacts of this change on different industries, stock markets, and cryptocurrencies can be analyzed from the following aspects:
One, impact on industries
Benefiting industries
Highly leveraged industries (such as real estate and utilities)
A decline in interest rates will reduce the financing costs for businesses, especially in industries that rely on debt financing (such as real estate developers and utility companies).