A $44 billion seven-year US Treasury auction cleared at a 4.473% yield on July 28, 21.3 basis points higher than June. Demand remained near normal with a 2.49 bid-to-cover ratio, but investors required substantially higher compensation to hold this debt. The Federal Reserve held rates at 3.5%-3.75% on July 29, with three members voting for a quarter-point increase. This guaranteed yield on US government debt creates direct competition for Bitcoin, which offers no contractual return. Bitcoin traded near $63,900 on July 31, showing little evidence that the decision improved its rate environment.
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