A wave of AI-related borrowing by Big Tech is adding pressure to U.S. bond markets, contributing to a rise in Treasury yields already driven by large federal deficits, a resilient economy, and inflationary shocks tied to the war in Iran. Investment-grade companies have issued nearly $1.5 trillion in debt this year, up 36% from 2025, with roughly $200 billion from major tech firms—an amount Nomura estimates equals about a quarter of net Treasury note and bond issuance to private investors. Investors say the surge in corporate supply is forcing all borrowers to compete harder for capital, nudging yields higher and pushing long-term Treasury rates to 25-year highs. With Amazon and Alphabet boosting capex plans and Nvidia seeking as much as $500 billion for AI, the supply pipeline shows little sign of easing, a dynamic that could keep financing costs elevated across markets.
AI-Fueled Corporate Borrowing Helps Lift Treasury Yields as Competition for Capital Intensifies
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