ING Flags Upside Potential in 10-Year U.S. Treasury Yield

Source: CryptoNewsNet Original Title: ING Flags Upside Potential in 10-Year U.S. Treasury Yield Original Link: https://cryptonews.net/news/analytics/32083325/ In a piece of bad news for crypto bulls, analysts at Dutch bank ING highlighted the breakout potential in the 10-year U.S. Treasury yield, currently 4.09%, consistent with market outlook.

The yield has shown resilience, holding above 4% despite several soft economic readings, including Wednesday’s negative ADP employment report for November, which marked the third contraction in five months. A higher yield could tighten financial conditions, disincentivize risk-taking and weigh on riskier assets including cryptocurrencies.

“Treasuries love that 4% to 4.1% trading range. Temporary break below more likely. But break above has more legs,” the bank said in an analyst note to clients on Thursday.

The yield, the U.S. government’s benchmark borrowing cost, fell 2 basis points to 4.06% following the ADP report and then quickly reversed. That was unusual. Weak labor data and subdued inflation headlines are usually a signal that interest rates are headed lower to boost the economy.