U.S. 30-year Treasury yield rose to 5.33% on Tuesday, a 19-year high. Japan's
10-year yield hit a 30-year peak, while German and French 30-year yields climbed
to their highest levels since 2011 and 2008. The advance reflects concern about
sticky inflation and a growing U.S. debt burden. Market participants say rising
yields increase discount rates applied to long-dated AI earnings and raise
borrowing costs, pressing planned data-center investment. State Street Global
strategist Batorini said materially higher, persistent yields would hit
long-duration growth stocks by lifting discount rates; he noted AI capex starts
funded by hyperscalers' cash but shifts toward bond financing over time, raising
sensitivity to yield swings. D.A. Davidson tech head Luria said higher borrowing
costs will make AI data-center projects harder to launch and will weigh unevenly
across the sector: diversified giants such as Microsoft and Amazon can absorb
the shock, while more debt-reliant players including CoreWeave and Oracle face
larger risk and tighter market scrutiny; for debt-dependent firms, small rate
moves could jeopardize expansion plans.
