Business & Finance
AI Debt Sales Are Keeping US Treasury Yields High
Key Points
AI Debt Sales Are Keeping US Treasury Yields High Corporate offerings reach almost $1.5 trillion year to date, up 36% from a year earlier. This article is for subscribers only. The “crowding out” theory in bond markets suggests a torrent of government borrowing leaves scant space for companies to raise funds, driving their interest rates to punishing levels.
AI Debt Sales Are Keeping US Treasury Yields High
Corporate offerings reach almost $1.5 trillion year to date, up 36% from a year earlier.
This article is for subscribers only.
The “crowding out” theory in bond markets suggests a torrent of government borrowing leaves scant space for companies to raise funds, driving their interest rates to punishing levels.
But now that the tech hyperscalers are on a borrowing binge for artificial intelligence, hoovering up hundreds of billions of dollars, some investors are wondering if the opposite is starting to happen.