Bitcoin slips as 10-year Treasury yield tops 5%

Bitcoin fell 2% over 24 hours on Wednesday afternoon in New York. Bitcoin traded at $84,357. The 10-year Treasury yield rose above 5% for the first time in 19 years. September's flash PMI data came in well ahead of forecasts. The data pushed the composite index to a five-year high. Input costs across manufacturing and services reached their highest level since October 2022. Fuel and transportation drove much of the increase. Wage pressure also strengthened. The U.S. Treasury said it will purchase up to $6 billion of longer-dated government debt on Thursday. Bitcoin dropped further around the time of that announcement. Bitcoin had risen earlier in the week as investors bought exchange-traded funds. Bitcoin reached nearly $87,330. Bitcoin's rally had cooled by Wednesday. Bitcoin previously benefited from a Treasury Department buyback announcement. That episode produced bitcoin's best run in months. Rising yields are typically a headwind for bitcoin's price. Higher rates tend to strengthen the dollar and reduce appetite for risk-on assets. Bitcoin has repeatedly retreated this year when yields rose on inflation fears. Exchange-traded fund outflows and forced selling by leveraged traders often amplified the move.