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US Treasury yields near multi-decade highs as AI reshapes capital flows
The benchmark 10-year Treasury yield was at 5.230%, and the 30-year yield hovered around 5.556%, levels tied to tighter conditions for India foreign portfolio investors.
LiveMint Markets reports that the US bond market has become a key trigger for the Indian stock market, with high Treasury yields, a strong dollar, elevated crude oil prices, and stretched valuations weighing on foreign portfolio investors (FPIs).
The outlet says the AI investment cycle has increased capital demand, particularly in the US technology sector, which can affect global capital flows. Analysts cited by LiveMint Markets add that a sharp reversal in AI spending could change those flows by easing US bond yields and redirecting money toward emerging markets.
LiveMint Markets also notes that the benchmark 10-year US Treasury yield stood at 5.230%, its highest level since July 2007, while the 30-year Treasury yield hovered around 5.556%, remaining near its highest level since 2004.
At the shorter end, the policy-sensitive two-year Treasury yield was near 4.956%, according to LiveMint Markets.
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