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The yield on 10-year U.S. Treasury bonds fell below 5%, as investors moved toward safe assets due to fears about the impact of artificial intelligence on markets, especially with technology companies' debts used to finance expansion. The yield stabilized at 4.99% after trading below 5% for the first time in a month, amid a decline in tech stocks and rising yields on their debts, notably with "Core Weave," which experienced significant losses and high credit default swap (CDS) spreads. Analysts expect continued pressure on the bond market, despite ongoing expectations that the Federal Reserve may raise interest rates. Meanwhile, consumer confidence remains low, even as some industrial sector indicators improve and oil prices rise due to risks of regional conflicts and attacks on oil facilities.
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