The AI boom is pushing bond yields higher in ways that go beyond corporate borrowing, ING says

According to strategists at ING, the AI boom is contributing to higher long-term bond yields beyond corporate borrowing. While inflation and fiscal deficits remain primary drivers, AI accounts for about one-fifth of the recent rise in long-dated yields. The global bond selloff has pushed Treasury yields to multi-decade highs as investors reassess growth, inflation, and AI's economic impact. Markets are increasingly pricing AI's potential to lift productivity and long-term growth.

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