AI hyperscaler bond spreads widen sharply versus US Treasuries

Bond market data show that long‑dated bonds issued by the world’s largest cloud‑service providers have seen their credit spreads expand markedly against U.S. Treasury yields. Using a size‑weighted average, the 10‑year credit spread for these AI‑linked hyperscaler bonds is now about 121 basis points above the U.S. 10‑year Treasury rate, whereas the broader investment‑grade corporate bond index trades at roughly 80 basis points.

The widening reflects investor worries about the high financing costs of massive AI‑related spending by these firms and the pressure that a surge of AI‑linked issuances places on Treasury yields. At the time of reporting, the U.S. 10‑year Treasury yield hovered near 4.65%, while the 30‑year rate stayed above 5% for the longest stretch since 2007.