Trump’s goal is to reduce the return for 10 years and its effects on BTC

US Treasury Secretary Scott Pesin He said Wednesday The Trump administration aims to reduce borrowing costs in the economy by reducing the return on the treasury note for a period of 10 years.

“I and I focus on the cabinet for 10 years,” Bessent told Fox Business when asked about plans to reduce interest rates. “It does not call the federal reserve to low interest rates,” Besin added.

The return for 10 years, which is called the risk -free rate, affects most of the long -term loans in the economy, including real estate loans and business loans. Consequently, the 10 -year return revenue encourages borrowing and investment, and increasing risks in the economy and financial markets.

Thus, softening the return for 10 years is usually seen as a rise to risk assets, including Bitcoin (BTC). Trump plans to reduce the return by controlling inflation, which is likely to preach goodness for BTC and reduce the budget deficit, which may serve as winds of risk origins.

“The energy component for them is one of the finest indicators for long -term inflation expectations,” Bisin said, known that enhancing energy supplies will help reduce inflation.

Other equal things, low inflation will allow the Federal Reserve (Fed) to continue to reduce rates, which still Very very much in restricted lands. It can add to the bullish momentum in the origins of danger. Since September, the Federal Reserve reduced the standard borrowing cost by 100 basis points to 4.25 % -4.5 %.

Meanwhile, the Bess’s strategy to inject a 10 -year -old dumping pressure also includes repairing the huge budget deficit during Low financial spending. Reducing the deficit may mean decreasing supply of bonds, high bond prices, and low returns.

However, the Biden administration is supposed Out of control Financial spending compensates for high federal reserve rates and encrypted financial markets. Therefore, any spending reduction can destabilize risk assets, including cryptocurrencies.

“Of course, getting a 10 -year return on a declining path means movements to improve the American financial position, as well male.

Sheridan added: “Most of the United States spending on health care, social security and defense. Will Trump lead to the pain that his focus appears to be involved? There is hardly a politician.”

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The return for 10 years decreased by 38 basis points to 4.42 % with market markets in low energy prices and non -inflation, according to the bitten.

JG analysts, however, don’t see a sustainable decrease.

“We also confirm that there is no huge space to the downside of 10 years. There is an effective floor in its place with a little less than 4 %, as it can be determined from the money price bar. This floor can turn, of course, but it will turn into a decrease, but it will lead To a decrease there is a better reason than the average of 10 years.

Ji added that it is difficult to see a large driver for a 10 -year lower return, regardless of the possible great success of the Ministry of Government efficiency, or Doge, which was created to reduce wasteful financial spending and reduce federal regulations.