Mortgage rates near 7% as oil and Treasury yields pressure stocks and Bitcoin

  • Bitcoin options traders reduced bullish call exposure after the token retreated from recent highs.
  • Bitcoin fell toward $78,000 after trading above $81,000 and was quoted at $77,845.88.
  • August PPI is forecast to rise 0.4% monthly and 5.3% annually.

Mortgage rates, equities and Bitcoin remained under macroeconomic pressure as Brent crude rose above $100 a barrel, Treasury yields approached multi-year highs and markets increased bets on a Federal Reserve rate increase. The average 30-year fixed mortgage rate reached 6.85% for the week ended Sept. 4, while Freddie Mac reported a 6.71% average for the week ended Sept. 3. The 10-year Treasury yield touched 4.857%, its highest level since November 2023, and Brent reached $101.37 in Asian trading amid concern over Strait of Hormuz oil flows during the U.S.-Iran conflict. CME FedWatch showed a 62.2% probability of a September rate increase. Bitcoin retreated from above $81,000 to about $78,000, with its price quoted at $77,845.88, while options traders reduced bullish call exposure ahead of U.S. inflation reports. August PPI was expected to rise 0.4% month over month and 5.3% annually after July was unchanged, while Friday's CPI data was also expected to show renewed inflation pressure. Higher-than-expected readings could reinforce rate-hike expectations, strengthen the dollar and add pressure to Bitcoin.

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