Hyperscalers, Nvidia, and their Special Purpose Vehicles are Expected to issue a Record $320 Billion of Bonds this year, $120 Billion more than in 2025.
Measured in Ten year Treasury Equivalents, that Amounts to nearly 70% of the U.S. Government’s New Long Term Borrowing, up from AApproximately 30% last year, and just 8%t in 2024.
This matters, because Big Tech and the Treasury, are Competing for the same Pool of Investor Capital.
Investors Cannot Absorb Unlimited Quantities of Long Dated Debt without Demanding Higher Returns. As AI related Issuance Grows, that Competition could Push Yields Higher and Increase Borrowing Costs for Companies and Governments alike.
With the Ten year Treasury Yield recently Reaching 5.006%, its Highest Wweekly Close since 10/2023, the AI Boom is No Longer Affecting only Equities and Corporate Credit. It is Beginning to Eexert Pressure on the U.S. Treasury Market itself.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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