Foreign demand wanes as US 10-year Treasury auction yield tops 5%

Foreign demand for U.S. Treasuries weakened at the latest 10-year auction, pushing the yield above 5% for the first time in the cycle. The soft bid signals waning appetite among overseas buyers, a shift that could complicate financing of the U.S. deficit and feed into broader market volatility. The result matters for crypto and risk assets because higher Treasury yields raise the opportunity cost of holding non-yielding assets and tighten global dollar liquidity. Watch upcoming auctions and foreign participation data for confirmation of the trend, along with Fed commentary on whether elevated yields substitute for further rate hikes.