Business & Finance
AI Is Driving Up Treasury Yields: ‘It Just Touches Everything’
Key Points
AI Is Driving Up Treasury Yields: ‘It Just Touches Everything’ An age-old economics tenet posits that excessive government borrowing can leave little room for companies to tap financial markets and drive up their interest rates to punishing levels. It’s called the “crowding out” theory. Now, as the so-called hyperscalers embark on a borrowing binge for artificial intelligence that’s hitting the market with a record flood of bonds, hoovering up hundreds of billions of dollars, some are...
AI Is Driving Up Treasury Yields: ‘It Just Touches Everything’
An age-old economics tenet posits that excessive government borrowing can leave little room for companies to tap financial markets and drive up their interest rates to punishing levels. It’s called the “crowding out” theory.
Now, as the so-called hyperscalers embark on a borrowing binge for artificial intelligence that’s hitting the market with a record flood of bonds, hoovering up hundreds of billions of dollars, some are wondering if the opposite is starting to happen.