# Treasury Yield Hits 24-Year High as AI Debt Surge

> US bond yields surge to 2007 peak amid AI infrastructure debt crisis.
- Title: Treasury Yield Hits 24-Year High as AI Debt Surge | Shortify
- Summary: 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…
- Keywords: 10 year treasury yield, ai data center debt crisis, ai infrastructure spending, federal reserve, oracle, credit default swap, treasury yield, ai debt financing, startups, business, Treasury, Yield
- Source: Startup Fortune — https://startupfortune.com/the-10-year-treasury-yield-just-broke-a-record-that-stood-since-2007
- Published: 2026-10-10T14:18:07+00:00
- Read time: 1 min
- Topics: 10 year treasury yield, ai data center debt crisis, ai infrastructure spending, federal reserve, oracle, credit default swap, treasury yield, ai debt financing, startups, business
## 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
## Key takeaway

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.