30-Year Yield Hits 5.33% as Fed Buyback Fails, Bitcoin Breaks Out to $79,000
thePropTrade Week – Sunday 23rd August 2026
5 min read
- August 23, 2026
Hi Traders,
Wow, what a week! A failed Treasury bond buyback rattled markets, the Fed showed rare internal division, and Bitcoin staged one of its most dramatic breakouts in months.
30-Year Yield Spikes as Treasury Bond Buyback Fails
The US 30-year yield dominated, as the yield curve steepened significantly early in the week. The rate hit a high of 5.33% on Tuesday before the surprising move by the US Treasury as it stepped in to buy US bonds. On Wednesday, the rate fell to 5.18%, but the initial buyback looks like it’s failed, as the rate closed the week back at 5.28%. Worries over sticky inflation and a US national debt that is now over $40 trillion persist.
Divided Fed Minutes Raise September Hike Odds
The Fed Minutes on Wednesday showed a divided FOMC focusing on inflation and the possibility of interest rate hikes. “Several” committee members wanted a hike at the July meeting, and “many” were looking to vote for a hike, should inflation data remain elevated. The CME FedWatch tool now shows expectations of a 25 bp increase in rates at the Fed’s next meeting in September at 38%, up from 30% earlier in the week.
Stocks and Dollar Tank as NASDAQ Falls 3%
Stock markets and the Dollar tanked. The NASDAQ was down 3% at one point, and all three of the major US markets closed lower for the week. The benchmark S&P 500 finished the week at 7,674, with its 20-day moving average at 7,650. The EURUSD hit a 40-day high, over 1.1700, USDJPY closed at 159.00, and GBPUSD at 1.3675 – a closing high not seen since February.
Gold Breaks $4,600, Bitcoin Surges 26% to $79,000
The Treasury market pivot rippled wider as Gold, which had broken from its summer range last week, rallied hard again, breaking $4,600 to close the week. Bitcoin was another major beneficiary; however, it also benefited from positive spin at a Blockchain symposium, major ETF inflows, and a very positive meeting between President Trump and major crypto executives. Last Friday (14th August), the key crypto traded into $62,400; at time of writing, it’s exchanging hands around $79,000 – a 26% plus breakout.
Iran Tensions Escalate as Brent Crude Climbs 6.39%
Who says August markets are boring? The war rhetoric soured again as President Trump promised an economic D-Day for Iran, as a poll in the FT showed 53% of Americans feel worse off with him in the White House. The Iranians vowed a response that would be “devastating” if US economic sanctions were increased. The global standard for energy, Brent crude futures, ultimately finished the session trading at $94.39 per barrel, a rise of 6.39% for the week.
The Week Ahead: PCE, Nvidia Earnings, and Jackson Hole
Next week, the Core PCE Price Index is the key data release on Wednesday, along with Nvidia earnings, also on Wednesday. Additionally, the FOMC Jackson Hole Symposium will demand attention – the gathering kicks off on Thursday, with Chair Warsh’s keynote address coming on Friday…
Trade Safely!