Bitcoin rebounded from its session low Thursday as U.S. Treasury yields eased following the previous day’s sharp sell-off in government bonds.

The 10-year Treasury yield slipped 2.4 basis points to 5.092%, while the two-year yield declined 3.9 basis points to 4.856%.

The modest decline in yields helped stabilize risk assets. The Nasdaq reduced an earlier loss of more than 1% to around 0.5%, while bitcoin recovered to $84,300 after dropping to approximately $83,000.

U.S. Home Sales Surpass Forecasts

New home sales in the U.S. rose to a seasonally adjusted annualized rate of 684,000 in August, up from 643,000 in July, according to Census Bureau data.

The increase exceeded forecasts for sales to fall to 620,000. Because the figures are subject to potentially significant revisions, the August reading could change.

Barkin Discusses Inflation and Rates

Richmond Fed President Tom Barkin said last week’s rate increase reflected concerns that inflationary pressures may persist longer than expected.

“New tariffs are still cropping up,” Barkin said, pointing to tariffs alongside the ongoing Middle East conflict and the continued AI build-out as factors putting pressure on supply chains.

Barkin has not committed to another rate hike. He said inflation could decline quickly if some recent shocks fade, consumers reach their spending limits, investment growth slows, markets correct or employment weakens enough to create problems for the labor market.

Oracle Looks to Defer Data Center Payments

Oracle (ORCL) has issued a force majeure notice to the developer of Blue Owl Capital’s Project Jupiter data center in New Mexico, Bloomberg reported.

Force majeure provisions can allow contractual obligations to be delayed or excused when circumstances outside a company’s control disrupt a project. Oracle is seeking to postpone payments if the data center fails to open on schedule in 2028, though it remains unclear whether the provision applies.

Blue Owl (OWL) shares declined 2.3% in premarket trading, while Bloom Energy (BE) dropped 4.4%. Oracle shares were down 4.2%.

Jobless Claims Stay Historically Low

Initial jobless claims remained below 200,000 last week, indicating that the U.S. labor market continues to show considerable strength.

Claims totaled 197,000, compared with 196,000 the previous week and below the 201,000 economists had forecast.

Bond Volatility Surges

Treasury-market volatility jumped as government bond yields reached their highest levels in years.

The MOVE index, which measures expected volatility in U.S. Treasuries, increased 21% to above 95, its highest reading since April.

The 10-year yield reached 5.116%, the highest since 2007, while the 30-year yield climbed to 5.419%, marking its highest level since 2004.

Gundlach Warns of Fed Trade-Off

DoubleLine Capital founder Jeff Gundlach highlighted the conflicting consequences of the Federal Reserve’s potential policy moves.

He said raising rates further could worsen interest costs because a large portion of government borrowing is concentrated at shorter maturities. Cutting rates, on the other hand, could make inflation more difficult to contain.

Crypto Markets Remain Under Pressure

Bitcoin was trading around $83,500 roughly two hours before the U.S. market open, down 2.55% over 24 hours. Ether and Solana were each lower by about 3%, while XRP had declined 7.5%.

U.S. stock futures also remained negative, with Nasdaq futures down 0.9% and S&P 500 futures lower by 0.5%.

The Treasury market stabilized Thursday after Wednesday’s sell-off drove the 10-year yield almost 20 basis points higher, taking it to its highest level in more than 19 years.

Investors are now watching initial jobless claims, August new home sales and comments from Fed officials for further signals on the interest-rate outlook.