Bitcoin briefly rose above $85,500 after US August PCE inflation came in below expectations, reducing near-term expectations for another Federal Reserve rate increase, but the advance faded as global bond yields and energy prices rose. The US 10-year Treasury yield reached 5.34%, the UK 30-year gilt yield reached 6.07%, its highest level since 1998, and Brent crude moved above $100 a barrel. The bond sell-off pushed London’s FTSE 100 down 1.7% and increased pressure on Chancellor John Healey ahead of his first Budget later this month, as higher borrowing costs narrowed the options for managing Britain’s strained public finances. The dollar index reached 101.66, while the won held near 1,350 per dollar and crypto markets remained mixed.