Treasury Buying Continues Despite Hot Inflation as AI Spending Worries Grow

U.S. Treasury buying has continued through two consecutive inflation readings that came in hotter than expected, as investors assess whether a possible slowdown in artificial intelligence investment is changing what drives bond yields. The buying runs against the usual market reaction: hotter inflation can pressure Treasury prices. Investors are weighing whether AI-driven capital spending helped lift yields and whether weaker investment momentum could shift that influence. Signs of strain have appeared across AI-linked markets. Semiconductor and AI-related stocks are entering corrections, growth at leading AI labs is slowing, and CoreWeave bond prices have fallen into distressed territory as yields climbed.

Source: TokenPost