Euro Stablecoin Interest Frozen as ECB Deposit Rate Hits 2.5%
ECB raised its key rates by 25bp to 2.5%, but euro stablecoin holders see no benefit as MiCA bans interest payments.
The 10-year yield hit 4.80%, just shy of the Jan 2025 high, as the bond bears' breakout above 4.75% targets 5%.
Crude oil has risen above $90, reaching $90.60. The seemingly endless war has stoked inflation fears, pushing the 10-year yield higher. It has now extended to 4.80%, the first time since January 2025. This is just below the January 2025 peak of 4.823%. If it moves above that level, the next target is 5%.
The 10-year yield has broken above the 4.60%–4.75% consolidation range that had contained trading since July 21. Bond bears are now in control—higher yields mean lower bond prices.
The key level now is 4.75%. A drop back below that would disappoint the bears and question the momentum. If it stays above, the next major stop is 5%.
The bond bear train is leaving consolidation station and gaining momentum.
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ECB raised its key rates by 25bp to 2.5%, but euro stablecoin holders see no benefit as MiCA bans interest payments.
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