AI Debt Sales Are Keeping US Treasury Yields High

Corporate AI debt sales have reached nearly $1.5 trillion year to date, marking a 36% increase from the previous year. This surge is keeping US Treasury yields elevated, with 30-year yields hitting their highest levels since 2007. These rising yields are increasing borrowing costs and potentially influencing Fed policy adjustments. Furthermore, the elevated Treasury yields are impacting the gold market, which may suppress gold prices and alter current investment strategies and inflation hedging approaches.