US Treasury yields climbed to levels not seen in over two decades on Wednesday, with the 10-year note briefly touching 5.36%, its highest since 2002, before easing after a well-received auction. The 30-year yield also traded near its 24-year peak at 5.67%. This move reflects ongoing investor concerns about inflation and elevated energy prices, with the 10-year yield having risen about 60 basis points since the end of July.
Oil Prices Slip as IEA Accelerates Stock Releases
Oil prices settled lower after a volatile session as the International Energy Agency (IEA) moved to accelerate previously announced stock releases and prioritize diesel supplies. US West Texas Intermediate fell 0.55% to $88.97, while Brent crude futures edged up 0.40% to $100.98. The IEA said that completing previously announced releases as quickly as possible could bring about 100 million barrels to the market, though analysts noted this may not represent a new intervention of that size. France is also set to release 10 million barrels of diesel from its strategic reserves, according to Franceinfo radio.
US crude inventories fell by 3.2 million barrels last week to 424.1 million barrels, according to the Energy Information Administration, defying analyst expectations of a 1.7 million barrel build.
Treasury Auction Draws Strong Demand
The Treasury sold $39 billion of 10-year notes on Wednesday, which BMO described as “strong,” with non-dealer investors accounting for a higher-than-average share of demand. Indirect bidders, including global central banks, took 80.3% of the notes, compared with a 72.4% average across the previous 10 auctions. Dealers bought only 2.5%, well below the 9.4% average. The auction yield of about 5.3% was the highest since 2000.
Bitcoin Falls as Crypto Market Faces Macro Pressure
Bitcoin declined nearly 3% to around $83,313 after reaching about $86,000 earlier in the week, dragging down major cryptocurrencies. Ethereum fell more than 4.6% to around $2,560, while XRP and Solana each declined about 5% and 3%, respectively. Leverage amplified the decline, with CoinGlass data showing about 1.25 million traders liquidated over 24 hours, with total liquidations reaching $717.58 million. Bitcoin liquidations totaled about $185.83 million, including $174.95 million in long positions.
The selloff also affected crypto-related stocks, including Strategy, Coinbase, Circle Internet Group and Robinhood Markets. Higher Treasury yields and expectations for further Fed rate increases added to the pressure on risk assets. Minutes from the Fed’s September meeting showed most officials believed another rate increase would likely be appropriate by year-end.
Micron Gains After Analyst Raises Target
Micron Technology shares rose about 3.74% on Wednesday after DA Davidson analyst Gil Luria raised his price target to $3,000 from $2,100. Luria said investors remain “early in their journey” in understanding Micron and argued that the market has not fully reflected the company’s expected growth over the next three to five years. His bullish outlook is based partly on expectations that memory-chip demand will remain above supply for several years as AI data centers expand. He noted that memory is important for AI performance, with high-bandwidth memory becoming increasingly important for AI accelerators.
Micron shares have already gained about 230% this year, although their valuation multiple has declined as earnings expectations have risen faster than the stock price. Luria also pointed to a potential share buyback program as another catalyst, with Micron expected to become free of significant restrictions on repurchases in December.
Separately, a union representing Micron workers in Taiwan authorized a strike over bonus and profit-sharing arrangements. The union said 99% of voting members supported strike authorization, although the timing of any action has not been decided.
This article is for informational purposes only and does not constitute financial advice.
