Bond Yields Rise Amidst Global AI Buildout and Emerging Markets

Global bond yields have been on the rise over recent weeks, with the US Treasury 30-year bond yield increasing to levels that prompted an unusual move by the Treasury to try and push rates back down. This trend is expected to continue due in part to a massive AI infrastructure buildout underway worldwide.

The concentration of emerging markets' focus on AI-related stocks has reached extreme levels, with fund managers navigating this landscape carefully. In related news, semiconductor stock Nvidia will be reporting its second-quarter earnings soon, and analysts expect it to be another 'beat and raise' quarter.

Meanwhile, private credit funds are being sold to individual investors by Wall Street firms, but data shows growing stress in the market. Additionally, extreme heat is taking a toll on Europe's economy, which may persist even if summer 2027 returns to normal temperatures.