As the 'AI bubble theory' gains traction, government bond prices rise and the dollar falls... investments concentrated in the US, showing signs of withdrawal.
Last week, AI-related market concerns led to a rise in major countries' bond prices, but a decline in the US dollar's value. The 10-year US Treasury bond yield fell to 5.09% on 16 October, down from 5.3% previously, while yields on Japanese and Korean government bonds also decreased. The dollar index, which measures the dollar's value against six other currencies, dropped to 101.78 on 16 October, down 0.8% from 12 October.
This unusual movement, with safe-haven assets like bonds and dollars not both strengthening, may be due to investors' expectation that a potential AI bubble burst would lead to a significant outflow of funds from US markets.
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.
This story
This is one outlet's version. Read the fullest account.
