STOCKS | Wall Street Shifts Into AI Bonds as Treasury Yields Rise

Wall Street is seeing a major rotation from U.S. Treasuries into AI corporate bonds as technology giants tap the investment-grade market with wider spreads. According to Sina Finance, the move is helping push U.S. Treasury yields higher, while the 30-year yield has returned to the elevated level seen before the Treasury's intervention. Goldman Sachs said global AI corporate bond issuance has approached $500 billion so far this year through August, accounting for 25% to 30% of all investment-grade corporate bond issuance. The report said Amazon issued $25 billion of bonds in July for AI data centers and related power infrastructure, while AI capital spending on computing, data centers and electricity could reach about $7.6 trillion from 2026 to 2031. The article said U.S. Treasury liquidity-support buybacks for 10-year to 30-year bonds were doubled to $4 billion per operation, but long-term yields rose again after a brief pullback. It added that some investors now view Treasury yields as a new fear gauge, with market participants watching the 10-year yield's 5% level as a key threshold.