Global Bond Yields Surge to Over Decade Highs Amid AI Boom and Government Borrowing

Market gauges of inflation-adjusted borrowing costs have reached their highest levels in over a decade across major economies. This surge is attributed to increased bond sales by artificial intelligence (AI) companies and continued heavy government borrowing, leading investors to demand higher returns. U.S. 30-year real yields, for instance, are nearing 18-year highs at approximately 3%.