The corners of American public debt at 30 years old are directed around 5%, after reaching the level of 5.15% last week. Investors have less and less interest in long -term state bonds. And it could have had huge effects on the Bitcoin price.
Increases tension on the bond market
Tensions are increasing on the American bond market. A survey published Wednesday by the JPMorgan Investment Bank shows that investors are increasingly covering the drop in bond prices. So-Called Direct short positionsWhich is attached to a drop in the value of American public debt, has reached the highest level from the function of the function. This affected a wide range of market participants, including central banks, sovereign funds and institutional investors.
The concern is not new. The United States has recently lost its latest credit rating “Triple A”, while the House of Representatives has agreed with a set of mass expenditure which will further increase nearly $ 37 billion in national dollars. At the same time, a strong wave of long -term bond sales, like the Japanese, is produced worldwide.
Según Leah traubPortfolio manager of Lord Abbett asset manager, there is a world model: “The yield curve breaks everywhere. The details differ from one country to another, but the underlying history is the same: the demand for long-term state bonds decreases, while the supply increases. Which exerts pressure on the long end of the performance curves ”.
The increase in long -term loans interest rates, combined with the increase in sovereign debt and the reduction in the credit rating, makes governments increasingly expensive to finance. This can also have long -term economic consequences, for example for investment or the real estate market, where long -term interest rates generally serve as a reference.
High interest rates depress the economy
The increase in long -term interest rates does not only maintain the refinancing of public debt. He also downloaded mortgage types over 7%. At the same time, companies and consumers have to pay higher interest rates for their loans. Together, this creates a situation in which the economy is subject to pressure, and it is not good for variable rent markets or for bitcoin.
He bitcoin It needs a strong economy to prosper, and this idea is now pressed by the increase in the performance of obligations.
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