One stimulant for higher rates was AI investment. New demand for trillions of dollars of debt will always push up rates unless the money is created, and that’s what happened. AI debt was considered better, safer, than government debt which is backed by nothing; at least trillions of dollars of data centres must be worth, well, at least a few hundred billions of dollars. So now that the AI debt story is beginning to crack (because the bubble never really got inflated) the full backing of the US govt. starts to look more solid than several square miles of buildings designed to hold zettabytes of ones and nothings. However, don’t expect the drop in UST yields to be long term, because long term nothing has changed. The govt. still has an insatiable demand for new debt.
One of the little ferrets has lost half his stake in a listed company running off the back of Firmus. Best lesson ever, hopefully. Don’t invest in anything that you don’t understand. And DYODD. The writing has been on the wall for months about AI debt.

