AI Infrastructure Debt Concerns Intensify, Driving Treasury Yields Below 5%

In this article

Investors ran for cover this week as fears surrounding artificial intelligence spending and higher oil prices both hit stocks, driving the yield on the 10-year U.S. Treasury note below 5%.

The benchmark yield remained just under 5% on Friday, after falling beneath that level Thursday for the first time in a month, as investors continued to express misgivings over the massive debt tech companies are taking on to finance their build-out of AI networks.

The magnitude of Thursday’

In this article

Even after another bond market rout Friday, investors are turning their attention toward Treasurys, anticipating that yields may be topping out.

The benchmark 10-year note spent the day flirting with the psychologically important 5% level as oil prices surged and a fresh consumer survey showed that inflation expectations remain a good distance above the Federal Reserve’s 2% goal.

Still, some market participants see reason for hope in a market bludgeoned this year over worries