From Startup Fortune · · 1m 30s
Treasury Yield Hits 24-Year High as AI Debt Surge
US bond yields surge to 2007 peak amid AI infrastructure debt crisis.
In brief
US bond yields surge to 2007 peak amid AI infrastructure debt crisis. The 10-year Treasury yield reached 5.34% after breaking a 24-year record, driven by record AI data center debt and credit market concerns. Originally reported by Startup Fortune.
Treasury yield breaks 24-year record
The 10-year Treasury yield touched 5.304% on September 30, nudging past the 5.303% peak set in 2007.
“5.304%”
AI debt drives yield surge
The 10-year yield rose 87 basis points over the third quarter, the sharpest three-month jump since 1994.
“87 basis points”
Government shutdown impacts data
The government shutdown froze the Bureau of Labor Statistics' job reports, affecting Fed data for October 28-29 meetings.
“Bureau of Labor Statistics”
Tech debt hits record levels
Big Tech issued $182 billion in investment-grade bonds to fund AI buildout, with hyperscaler spending expected to top $690 billion.
“$182 billion”
Oracle credit rating cut
S&P cut Oracle's credit rating to BBB- after negative free cash flow of $23.7 billion against $130 billion debt.
“BBB-”
Credit default swaps surge
Oracle's five-year CDS spread hit 2.03 percentage points, an 18-year high, up from 144 basis points at start of 2026.
“2.03 percentage points”
AI debt crisis deepens
Total net notional CDS exposure on major tech names hit a record $12.5 billion, up 500% since second quarter of 2025.
“$12.5 billion”
Bond market reaction
Higher long-term yields make AI data centers harder to service, shifting the 'AI bubble' debate toward skepticism.
“AI bubble”
The essence
The 10-year Treasury yield reached 5.34% after breaking a 24-year record, driven by record AI data center debt and credit market concerns.
