WOLF(@WOLF_Financial):THE 10-YEAR TREASURY YIELD HIT 5.23% ON FRIDAY, ITS HIGHEST SINCE 2007 The 10-year Treasury is a loan to the US government. Its interest rate sets the price of almost every other loan in the country, including your mortgage. It was under 4.8% at the start of September. Now it's over 5.2%. Part of that is inflation. But Macquarie's Thierry Wizman says the bigger reason is that too many bonds are for sale. When sellers outnumber buyers, they have to offer a higher rate to get the money. Who's selling? The US government, to cover its deficit. And AI companies, to build data centers. Google $GOOGL, Amazon $AMZN, Meta $META, Microsoft $MSFT and Oracle $ORCL sold about $132 billion of bonds through July, per Vanguard, up from a $35 billion yearly average from 2020 to 2024. All of those bonds compete with Treasuries for the same buyers, so Treasury rates rise, and so does everything priced off them. Wizman says the AI spending keeps going into next year. "So these yields could go higher."

2026.09.26 19:42

THE 10-YEAR TREASURY YIELD HIT 5.23% ON FRIDAY, ITS HIGHEST SINCE 2007 The 10-year Treasury is a loan to the US government. Its interest rate sets the price of almost every other loan in the country, including your mortgage. It was under 4.8% at the start of September. Now it's over 5.2%. Part of that is inflation. But Macquarie's Thierry Wizman says the bigger reason is that too many bonds are for sale. When sellers outnumber buyers, they have to offer a higher rate to get the money. Who's selling? The US government, to cover its deficit. And AI companies, to build data centers. Google $GOOGL, Amazon $AMZN, Meta $META, Microsoft $MSFT and Oracle $ORCL sold about $132 billion of bonds through July, per Vanguard, up from a $35 billion yearly average from 2020 to 2024. All of those bonds compete with Treasuries for the same buyers, so Treasury rates rise, and so does everything priced off them. Wizman says the AI spending keeps going into next year. "So these yields could go higher."