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Rising long-term yields challenge crypto’s hedge narrative

The 30-year U.S. Treasury yield climbed to 5.33%, while TLT fell to an all-time low of $81.35, as investors weigh debt supply and refinancing risk tied to AI bond issuance.

Reported · Written up by our desk · Market Structure

Long-term borrowing costs have surged across major markets, with the 30-year U.S. Treasury yield rising to 5.33%, its highest level since 2007, in what CoinDesk frames as mounting debt and sovereign-finance concerns. The article notes the U.S. government debt is approaching $40 trillion, and that higher yields can pull capital away from risk assets.

CoinDesk also points to stress in other government-bond markets, including a near-6% level for the equivalent U.K. gilt yield and French borrowing costs at their highest since 2008, alongside Japan’s long-term yields continuing to set records. It cites ETF performance as well, saying TLT, which tracks long-duration U.S. Treasuries, fell to an all-time low of $81.35 on Monday.

The story connects the bond selloff to debt supply pressures and refinancing risk linked to the AI infrastructure buildout. It says AI hyperscalers have issued a combined $159 billion of bonds in 2026, up 47% year over year, and that Goldman Sachs expects total issuance to reach $400 billion this year.

Against that backdrop, CoinDesk highlights a tension in the so-called hedge narrative for non-yielding assets like gold and bitcoin. Gold is reported to have gained 10% this month, while bitcoin has underperformed for nine months and is stuck in a low-volatility lull just above $64,000.

Latest closeGold $4,157.80 ▲0.4%|Bitcoin $81,906.63 ▼1.4%

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