<ul><li>The latest 2-Year Treasury Note Auction showed yields climbing to 3.955%, which is up from 3.795% in April, reflecting investor concerns about Federal Reserve policy and inflation trends.</li><li>Despite the rise in yields, there was still demand for Treasury notes, with a high indirect bidder participation of 63.5%, indicating continued confidence in U.S. short-term securities.</li><li>The increase in yields implies that investors are less optimistic about potential rate cuts, as they seek higher returns to offset the risk of prolonged elevated borrowing costs.</li><li>Bitcoin reacted negatively to the auction, dropping below $110K, with a more than 0.7% loss in less than an hour, highlighting market uncertainty and sensitivity to rising yields.</li></ul>

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