Is Hyperscaler Debt Hitting Demand for U.S. Treasurys? — WSJ

By Chelsey Dulaney

The rush to fund the artificial-intelligence boom is hitting demand for Treasurys, according to Torsten Slok, Apollo Global Management's chief economist.

Slok said the surge in debt issuance from the so-called AI hyperscalers is leading fixed-income managers to divert investments away from U.S. government debt and other types of credit.

"It is absolutely crowding out not only U.S. Treasurys but across the board in credit," Slok said at the European Central Bank's forum in Sintra, Portugal. "The simple question is where is that $700 billion coming from to buy the bonds that hyperscalers are selling at the moment."

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