US Treasury Auction Is Imminent, Bitcoin Yields Soar or Ignore Pressure

According to Woofun AI, the US Treasury's bond auction scheduled to be held from August 11 to August 13 is becoming a key point in testing whether Bitcoin can withstand traditional financial pressure.

The total scale of this auction reached 125 billion US dollars, of which about 96.3 billion US dollars was used to refinance privately held debts due on August 15, and the remaining US$28.7 billion needed to be raised from the market. Notably, two inflation data reports will also be released within a few hours before the 10-year and 30-year bonds are issued.

According to WooFunai, the design of this time window is designed to observe whether the increase in yield caused by weak demand for bonds will substantially squeeze the price of Bitcoin.

In terms of analytical logic, the Bitcoin price announced on Sunday cannot be directly compared to the bond interest rate determined on Friday; it must be combined with the inflation data and auction results for the same period. The July auction results provided a benchmark for August: FinancialJuice reports that the initial yield on 3-year and 10-year bonds issued in July fell 0.6 basis points, respectively, and the 30-year bonds fell 0.3 basis points. Since the US Treasury does not announce the initial yield, this comparison has auxiliary reference value only.

If the August auction performance is weak, in addition to the lower initial yield, the bid coverage rate and proportion of indirect bidders may also be lower than similar auctions in July. It is difficult to determine based on data alone. The scale of the auction and the re-auction of longer-term bonds in July will all influence the final judgment.