Hyperscalers Sell $223 Billion in AI Bonds, Pushing 30-Year Treasury Yield Above 5.33%
Updated
Updated · CNBC · Aug 20
Hyperscalers Sell $223 Billion in AI Bonds, Pushing 30-Year Treasury Yield Above 5.33%
3 articles · Updated · CNBC · Aug 20
Summary
$223 billion of bonds from Alphabet, Amazon, Meta and Oracle by Aug. 20 has more than doubled all of 2025 issuance, as hyperscalers fund AI expansion.
Evercore said the flood of high-quality corporate debt is competing with government bonds and being hedged in sovereign markets, helping lift yields globally and fueling expectations of still more supply.
The 30-year Treasury yield briefly topped 5.33% on Tuesday — a 19-year high — before easing after Treasury buyback plans, then rising again Thursday amid deficit and inflation worries.
Income investors can now find roughly 4.75% to 8% yields on mostly investment-grade hyperscaler bonds, with Morgan Stanley estimating about 6.5% on long-dated debt from top AI issuers.
Strategists still urge selectivity and diversification because AI project returns remain unproven, credit quality varies across deals, and continued issuance could widen spreads again.