In July, private foreign investors sold $29.1 billion in Treasury notes and bonds while foreign buyers rotated into short-term bills with a net purchase of $38.8 billion. The 10-year Treasury yield reached 5.01% on September 16, keeping borrowing costs elevated. Net foreign acquisition of all long-term securities turned negative at negative $27.9 billion. This setup leaves Bitcoin exposed to duration pressure, as higher risk-free returns increase the opportunity cost of holding non-yielding assets. For Bitcoin, the next sign of improvement would be private foreign accounts returning to Treasury notes and bonds alongside a sustained decline in long yields.
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