AI Debt Concerns as Treasury Yields Spike to 5.17%

Treasury yields have climbed to their highest levels since 2007, with the 10-year yield now at 5.17%, increasing about 1 percentage point since the start of the year. AI infrastructure development has reached historic levels, with JPMorgan Chase estimating that $4.1 trillion in AI-related debt will be issued through 2030. While shares of CoreWeave rose almost 8% this week, Oracle's stock fell by 7% and 30% this year as borrowing costs increase. This situation raises challenges for companies dependent on debt financing, which may affect future investment funds for AI development.

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