Bitcoin recovered from its Thursday session low as U.S. Treasury yields moved lower following a sharp bond-market sell-off a day earlier.
The 10-year Treasury yield fell 2.4 basis points to 5.092%, while the two-year yield declined 3.9 basis points to 4.856%.
Lower yields offered some support to risk assets. The Nasdaq pared an earlier loss of more than 1% to about 0.5%, while bitcoin climbed to $84,300 after briefly falling to around $83,000.
New Home Sales Beat Expectations
U.S. new home sales rose to a seasonally adjusted annualized rate of 684,000 in August from 643,000 in July, according to Census Bureau figures.
Economists had expected sales to decline to 620,000. The data can be revised substantially, making the latest reading subject to change.
Barkin Says Inflation Risks Persist
Richmond Fed President Tom Barkin said last week’s interest-rate increase reflected concerns that inflationary shocks may no longer prove as temporary as initially expected.
“New tariffs are still cropping up,” Barkin said, while citing the continuing Middle East conflict and the rapid expansion of artificial intelligence investment as additional pressures on supply chains.
Barkin did not signal support for another rate hike. He said inflation could fall relatively quickly if some recent shocks reverse, consumers pull back, investment slows, markets correct or weaker employment makes labor-market conditions a greater concern.
Oracle Seeks to Delay Project Jupiter Payments
Oracle (ORCL) has issued a force majeure notice involving Blue Owl Capital’s Project Jupiter data center in New Mexico, Bloomberg reported.
The contractual provision can suspend or delay obligations when circumstances beyond a company’s control interfere with a project. Oracle wants to defer payments if the facility misses its planned 2028 opening, although it remains uncertain whether the clause covers the situation.
Blue Owl shares fell 2.3% in premarket trading, while Bloom Energy (BE) dropped 4.4%. Oracle was down 4.2%.
Jobless Claims Remain Below 200,000
Initial U.S. jobless claims stayed near historically low levels last week, signaling continued strength in the labor market.
Claims came in at 197,000, compared with 196,000 in the previous week and below economists’ estimate of 201,000.
Treasury Volatility Hits Highest Since April
Volatility expectations in the U.S. government bond market surged as Treasury yields reached multi-year highs.
The MOVE index climbed 21% to above 95, its highest level since April. The 10-year Treasury yield reached 5.116%, its highest since 2007, while the 30-year yield rose to 5.419%, the highest since 2004.
Gundlach Highlights Policy Trade-Off
Jeff Gundlach, founder of DoubleLine Capital, described the Fed’s policy choices as a difficult trade-off.
He said another rate hike could increase interest costs because much of the government’s borrowing is concentrated at shorter maturities. Cutting rates, meanwhile, could intensify inflationary pressure.
Bitcoin, Stocks Still Face Pressure
Bitcoin traded near $83,500 about two hours before the U.S. market opened, down 2.55% over 24 hours. Ether and Solana were each down around 3%, while XRP had fallen 7.5%.
U.S. equity futures also remained lower, with Nasdaq futures down 0.9% and S&P 500 futures off 0.5%.
The bond market steadied Thursday after Wednesday’s sell-off pushed the 10-year Treasury yield almost 20 basis points higher to its strongest level in more than 19 years.
Markets are also focused on Thursday’s jobless claims, August new home sales and comments from Federal Reserve officials for further clues on the interest-rate outlook.
