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New York: Bitcoin bounced and global stocks clawed back some of their recent losses on Friday as investors assessed the US Treasury\u2019s efforts to push down long-term borrowing costs.<\/strong><\/p>\n Bond yields were steady and oil prices rose as the United States and Iran remained deadlocked over a deal to reopen the Strait of Hormuz.<\/p>\n That was enough to allow equities to bounce, after having largely fallen over the past week.<\/p>\n Bitcoin climbed more than six percent to about $77,188 and is up more than 20 percent this week \u2014 to its highest level since May \u2014 as the US Treasury\u2019s surprise move to buy back more of its own bonds increased liquidity and added to investors\u2019 risk appetite.<\/p>\n The rally in the world\u2019s biggest cryptocurrency by market value was also spurred by US President Donald Trump urging lawmakers to pass legislation aimed at encouraging crypto use.<\/p>\n \u201cThe turmoil in the debt markets continues despite efforts to calm feverish borrowing costs,\u201d said Susannah Streeter, chief investment strategist at Wealth Club.<\/p>\n \u201cInvestors remain concerned about inflationary risks and the growing mountain of government borrowing, while at the same time, debt being issued by tech giants building out the AI revolution is offering stiff competition,\u201d she added.<\/p>\n The three main US stocks indexes all closed higher after having mostly fallen this week.<\/p>\n \u201cIf you look at the past five trading sessions or so, if you were short, it\u2019s probably not a bad time to do some short covering,\u201d said Tom Cahill of Ventura Wealth Management.<\/p>\n In Europe, London, Paris and Frankfurt all closed higher. For Paris, it was the first gain after nine successive declines.<\/p>\n Even with Friday\u2019s bounce, European stock indices \u201clook set to post their worst weekly performance in nearly two months,\u201d said David Morrison, an analyst at Trade Nation.<\/p>\n \u201cThe escalation in the US-Iran war, higher oil prices and inflation concerns are all factors weighing on equities,\u201d he said.<\/p>\n \u201cThis week\u2019s sell-off marks a stark reversal for markets that had entered August riding a stellar second-quarter reporting season.\u201d<\/p>\n The US Treasury bought its own bonds this week in an effort to push down borrowing costs after the 30-year yield surged to levels last seen in 2007, just before the global financial crisis.<\/p>\n\u2013 US bond buy-back \u2013<\/h2>\n