Bits + Bips: Is Bitcoin’s Rally a Debasement Trade or a Short Squeeze?

00:00 Austin

Is the debasement trade back? September payrolls came in at 29,000, uh, knocking an October Fed hike mostly off the table. Yet if we look at 10-year yields, the 10-year is back above 5.3. In fact, as I'm looking at it on the screen, I see 5.311 for the 10 year.

00:27 Austin

So, this is still the highest it's been since 2007. The long-end buybacks haven't pulled down yields. France's bond spreads are now at their widest since 2011 and the question is whether markets are pricing in fiscal debasement and whether Bitcoin is the trade among other things. So like, Ram, let me set this up and then I would like your opinion as an investor. So, one,

00:54 Austin

90k expected jobs, 29k actual. Unemployment is 4.2%, but I want to note the number of non-working adults is continuing to go up as people fall off the back of the unemployment list. Yields are not coming down.

01:13 Austin

10-year fell to 5.17, it's back to 5.33. The 30-year equally stubbornly high. Treasury took in 6 point or 6 billion of an October 1 buyback and long yields are kind of ignoring it. France's 10-year hit almost five, the highest since 2002. And Anthony Gutman at Goldman said, we need to lower fiscal deficits and we need more durable economic growth.