Warsh: AI hyperscaler debt is raising borrowing costs
- —The Fed raised rates by 0.25 percentage points to a 3.75–4% range
- —The US 10-year Treasury yield reached 5%
- —Hyperscalers issued $121 billion in bonds in 2025 versus an average of $28 billion previously
- —Morgan Stanley expects AI-related debt of about $570 billion in 2026
Why it matters: Rising Treasury yields driven by AI debt increase the cost of capital and weigh on risk assets, including crypto.
Source: DiarioBitcoin