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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-08-18 21:07

yield spread between a safe asset and a riskier one is an expression of the required return per unit of risk higher yield spreads, means risker bonds are significantly cheaper than US Treasury bonds, thus the market is valuing safe assets with a premium - a "risk-off" signal

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yield spreads between US Treasuries and riskier bonds mirror the price of Bitcoin in practice, there is a correlation between them: ๐Ÿ“ˆ yield spreads up = โฌ‡๏ธ BTC down ๐Ÿ“‰ yield spreads down = โฌ†๏ธ BTC up why? because those spreads are proxy for market's risk appetite

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