Tech Giants' Debt Surge Drives 30-Year Treasury Yield to New High

The US Treasury's 30-year bond yield has reached its highest level of the year at 5.27%, largely due to increased borrowing from technology companies.

According to JPMorgan Asset Management, tech giants have sold $192 billion in bonds this year alone, up from $61 billion over the five-year average. This surge in debt issuance has led to higher yields, with the 10-year Treasury yield sitting at 4.68%, a 0.49 percentage point increase since January 2.

Bank of America economists attribute about 60% of the rise in the 10-year yield to new corporate and mortgage bond supply. Alphabet's recent pricing of 30-year debt near 6.4% has set a bar for Bitcoin's price performance, which has struggled to clear it as global bond yields climb.

Treasury Secretary Scott Bessent has attempted to mitigate the impact by selling more short-term debt, but AI-driven borrowing has filled that space and more, with net corporate bond supply expected to grow by $474 billion this year. The federal deficit has also increased, hitting $1.8 trillion in the first 10 months of fiscal 2026.

'That is a crowding-out effect,' said Greg Peters, co-chief investment officer at PGIM. 'It is important to remember that we are just starting. This hyperscaler debt issuance story has really just begun.'