Treasury Sells $125 Billion in Debt as CPI and PPI Test Yields, Bitcoin

3 articles · Updated · CryptoSlate · Aug 9

$125 billion of Treasury supply will hit the market Aug. 11-13, with $58 billion of 3-year notes, $42 billion of 10-year notes and $25 billion of 30-year bonds settling on Aug. 17.
Only about $28.7 billion is new cash to be raised because $96.3 billion will refinance maturing privately held debt, but the auctions land just hours after July CPI on Aug. 12 and July PPI on Aug. 13.
That timing makes the 10-year and 30-year sales a near real-time test of whether hotter inflation lifts yields and weakens demand enough to pressure Bitcoin, which was quoted at $64,928.71 on Aug. 9.
July's auctions set the benchmark: bid-to-cover ratios were 2.60 for 3-years, 2.59 for 10-years and 2.44 for 30-years, with weaker August demand likely showing up through a positive tail and lower indirect bidding.
New York Fed research found Bitcoin has historically been broadly disconnected from macro news, so any bond-yield link this week would need to appear in the same event window rather than be assumed.