Attention Bitcoin Bulls: The U.S. 10-Year Yield Isn't Budging Despite Fed Rate Cut Hopes

Source: CryptoNewsNet Original Title: Attention Bitcoin Bulls: The U.S. 10-Year Yield Isn’t Budging Despite Fed Rate Cut Hopes Original Link: As bitcoin BTC$86,995.19 bulls pin their hopes on Federal Reserve (Fed) rate cuts to drive a sustained decline in bond yields and the dollar, signals from the bond market tell a different story.

The Fed is expected to cut rates by 25 basis points to the 3.5%-3.75% range on Dec. 10, continuing the so-called easing cycle that began in September last year. Several investment banks, including major financial institutions, expect rates to drop to 3% next year.

An expected drop in interest rates typically weighs on Treasury bond yields and weakens the dollar index, both of which support increased risk-taking in financial markets, including cryptocurrencies. But that’s not happening of late.

The yield on the 10-year Treasury note continues to hover above 4% in familiar ranges. Moreover, it is up 50 basis points since the Fed’s first rate cut in mid-September 2024.

The U.S. 10-year yield is up 50 bps since the first Fed rate cut in September 2024.