U.S. Treasury Secretary Scott Bessent has stated that the Trump administration aims to lower borrowing costs in the economy by reducing the yield on the 10-year Treasury note. This approach is expected to encourage borrowing and investment, increasing risk-taking in the economy and financial markets. Lower inflation would allow the Federal Reserve to continue cutting rates, adding to the bullish momentum in risk assets such as bitcoin. To lower the yield, Bessent plans to control inflation and reduce the budget deficit through reduced fiscal spending. However, any cut in spending could destabilize risk assets, including cryptocurrencies. Analysts have differing opinions on the sustainability of the drop in the 10-year yield, with some asserting that there is not much room for further downside.



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