Bitcoin drops 2% as hot PPI lifts 30-year yield to 19-year high — SkimNews
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- Bitcoin fell roughly 2% on the day, tracking weakness in US equities after the inflation data hit, per TradingView data cited by Cointelegraph.
- The August US Producer Price Index rose 5.4% year-on-year, 0.1 percentage point above expectations, with July's headline figure revised higher, according to the Bureau of Labor Statistics.
- The US 30-year Treasury yield reached 5.353%, a level last seen in June 2007, while the 10-year yield hit 4.924%, its highest since November 2023 — even as the Treasury repurchased $6 billion in securities in its first debt buyback operation.
- CME FedWatch odds of a 0.25% Fed rate hike at the September 16 meeting jumped to 69.8% from 61.2% a day earlier, building on concerns already amplified by strong nonfarm payrolls data.
- Oil prices surged on Middle East escalation, with WTI crude passing $100/barrel for the first time since May 21 and Brent crude topping $105/barrel, nearing a 16-week high and adding to inflation pressure.
- The Kobeissi Letter warned on X that "the bond market is quite literally fighting the US Treasury" as long-dated yields broke out despite stepped-up buybacks.
- The European Central Bank enacted a 0.25% rate hike on Thursday — its second such move in 2026 — while Friday's CPI release looms as the last major US inflation print before the Fed's decision.
Why it matters: With PPI running 0.1 point hot and core PPI up 4.7% year-on-year, the odds of a September Fed hike jumped roughly 9 percentage points in a day, directly pressuring risk assets like Bitcoin. Crypto traders now face Friday's CPI as the final major data hurdle before the September 16 decision, and a 30-year yield at June 2007 levels signals the bond market is pricing in sticky inflation regardless of Treasury buybacks.
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