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Gold and bitcoin surge after bond selloff
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The gist
Gold and bitcoin surged as bond yields hit 20-year highs. Investors hedge against sovereign debt fears.
Background
A global bond selloff pushed the 30-year U.S. Treasury yield to 5.33%, its highest since 2007, and the 10-year to about 4.72%. This reflects concerns over fiscal credibility and inflation, partly due to Middle East tensions. Despite higher yields typically making non-yielding assets like gold and bitcoin less attractive, both surged, suggesting investors view them as hedges against sovereign debt risks.
How it unfolded
- Aug 18, 202630-year Treasury yield climbed to 5.33%, highest since 2007; gold slid $83 as yields surged.
- Aug 19, 2026Bond selloff continued, with 10-year yield above 4.72% and Japan's 10-year at 2.945%, a 30-year high.
- Aug 20, 2026Bitcoin surged as much as 7.7%, most since March, trading at $68,476, ahead of a White House meeting on crypto regulation.
- Aug 21, 2026Gold and bitcoin surge amid ongoing bond market stress; Brent crude at $93.42 a barrel.
Who’s saying what
- Analysts
- Higher yields can pull capital away from speculative assets, making gold and bitcoin less attractive.
- Bulls
- Gold's 10% gain this month suggests investors are hedging against weakening sovereign credibility.
Still unverified
The specific reason for the bond selloff is not fully confirmed; some attribute it to fiscal concerns, others to inflation fears.