40% of the rise in US long-term Treasury yields has been driven by the AI investment boom.
The surge in artificial intelligence investments has led to a significant increase in long-term corporate bond issuance by major tech companies like Oracle, Google, and Amazon. According to Bank of America, this has resulted in an estimated 0.30% increase in the US 10-year Treasury yield. The yield currently stands at 4.805%, its highest level since January last year.
The increased issuance of AI-related bonds is absorbing demand for US Treasuries, contributing to the rise in yields, with Goldman Sachs estimating that AI-related bond issuance accounts for around 24% of total US investment-grade bond issuance this year.
Written by urgent.news from Hankyoreh's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
