Market mood dims as US 30-year borrowing rates hit the highest since 2002
Summary
US 30-year Treasury yields rose 5 basis points to 5.61%, the highest since 2002. The article argues that inflation, too-high fiscal spending, rising energy prices and a glut of debt have pushed borrowing costs higher, while the AI capex boom has already soaked up much of the world's available lending capacity. Higher borrowing costs cascade down to businesses and consumers, sapping future growth and making investment less attractive, which hurts equities.
Bubble analysis
This article is only indirectly related to the AI bubble question: it gives no hard figures on AI capex or AI revenue, but it points to a key mechanism — the AI capex boom has already absorbed much of the available lending capacity, and rising rates raise the cost of financing AI projects and pressure valuations. If borrowing costs keep climbing, the cheap-money-funded AI investment cycle could become harder to sustain, which is a macro footnote to the bubble debate, though the article itself does not directly argue the case.
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