Live: Bitcoin Rebounds From Session Lows as Interest Rates Ease

U.S. Treasury yields moved modestly lower early Thursday after a sharp sell-off in the bond market the previous day.

The 10-year Treasury yield fell 2.4 basis points to 5.092%, while the two-year yield declined 3.9 basis points to 4.856%.

The retreat in borrowing costs provided some relief for risk assets. The Nasdaq narrowed an earlier loss of more than 1% to about 0.5%, while bitcoin recovered to $84,300 after touching roughly $83,000 during the session.

U.S. New Home Sales Beat Expectations

U.S. new home sales increased to a seasonally adjusted annual rate of 684,000 in August, up from 643,000 in July, according to Census Bureau data.

Economists had expected sales to fall to 620,000. The data is subject to significant revisions and reflects conditions from an earlier period.

Barkin Explains Last Week’s Rate Hike

Richmond Fed President Tom Barkin said the Federal Reserve’s decision to raise interest rates last week reflected concerns that recent inflationary pressures may prove less temporary than previously expected.

“New tariffs are still cropping up,” Barkin said, while also pointing to the continuing conflict in the Middle East and the AI investment boom, which he said was placing additional pressure on supply chains.

Barkin has not committed to supporting another rate increase. He said inflation could still decline quickly if recent shocks fade, consumers reduce spending, investment slows, markets experience a correction or weaker employment makes the labor market a bigger concern.

Oracle Payment Dispute Pressures Shares

Oracle (ORCL) has issued a force majeure notice to the developer of Blue Owl Capital’s Project Jupiter data center in New Mexico, Bloomberg reported.

The contractual provision can delay or excuse obligations when circumstances beyond a party’s control disrupt a project. Oracle is seeking to postpone payments if the facility fails to open as scheduled in 2028, although it remains unclear whether the force majeure clause applies.

Blue Owl (OWL) shares fell 2.3% in premarket trading, while Bloom Energy (BE) dropped 4.4%. Oracle was down 4.2%.

Jobless Claims Remain Historically Low

Initial U.S. jobless claims remained below 200,000 last week, reinforcing signs of continued strength in the labor market.

Claims totaled 197,000, compared with 196,000 previously. Economists had forecast a modest increase to 201,000.

Treasury Volatility Jumps

Volatility expectations in the U.S. Treasury market climbed sharply as yields reached multi-decade highs.

The MOVE index, which tracks expected Treasury-market volatility, jumped 21% to above 95, its highest level since April.

The 10-year Treasury yield climbed to 5.116%, marking its highest level since 2007, while the 30-year yield reached 5.419%, its highest since 2004.

Gundlach Highlights Fed’s Policy Dilemma

DoubleLine Capital founder Jeff Gundlach described the situation facing the Federal Reserve as a dilemma.

He argued that another rate hike could increase interest expenses because much government borrowing is concentrated at the short end of the curve, while a rate cut could add to inflationary pressures.

Bitcoin and Stocks Remain Under Pressure

Bitcoin was trading around $83,500 two hours before the U.S. market opened Thursday, down 2.55% over 24 hours. Ether and Solana were each lower by roughly 3%, while XRP fell 7.5%.

U.S. equity futures also pointed to another weaker session, with Nasdaq futures down 0.9% and S&P 500 futures lower by 0.5%.

The bond market steadied Thursday morning after the previous day’s sell-off pushed the 10-year Treasury yield nearly 20 basis points higher to its strongest level in more than 19 years.

Markets are also watching Thursday’s economic calendar, which includes initial jobless claims, August new home sales and remarks from several Federal Reserve officials.

About The Author