Treasuries’ Link to AI Shows Sharp Shift as Haven Trade Returns
U.S. Treasury yields dropped below 5 percent to their lowest level in nearly a month as a sharp selloff in artificial intelligence and tech stocks drove investors to seek safety. The 10-year Treasury yield tumbled in an extreme plunge, marking the best day for Treasuries in over a year. Wall Street traded lower as renewed concerns over AI spending weighed heavily on technology equities, while memory stocks slid and oil prices rebounded on supply fears alongside French political turmoil.
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- ✓ The 10-year Treasury yield fell under 5 percent to its lowest level in nearly a month.
- ✓ Wall Street equities traded lower with the Nasdaq falling as renewed concerns over AI spending weighed on tech stocks.
- ✓ Treasuries saw their best day in over a year as the AI selloff revived haven demand.
What changed
Ten-year Treasury yields tumbled below 5 percent for the first time in nearly a month as an artificial intelligence stock selloff revived traditional haven trading.
Live updates
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Bond Yields Fall Below 5% as AI Selloff Triggers Haven Demand
U.S. Treasury yields dropped below 5 percent to their lowest level in nearly a month as a sharp selloff in artificial intelligence and tech stocks drove investors to seek safety. The 10-year Treasury yield tumbled in an extreme plunge, marking the best day for Treasuries in over a year. Wall Street traded lower as renewed concerns over AI spending weighed heavily on technology equities, while memory stocks slid and oil prices rebounded on supply fears alongside French political turmoil.
Why it matters
The sharp drop in Treasury yields marks a notable shift in market correlation, as government bonds reclaim their traditional status as a safe haven during equity downturns. Investors are increasingly questioning heavy technology and artificial intelligence expenditures, prompting a flight to defensive assets. This market turbulence arrives ahead of a busy economic calendar featuring upcoming Big Tech earnings reports and a Federal Open Market Committee decision.
What is confirmed
- The 10-year Treasury yield fell under 5 percent to its lowest level in nearly a month.
- Wall Street equities traded lower with the Nasdaq falling as renewed concerns over AI spending weighed on tech stocks.
- Treasuries saw their best day in over a year as the AI selloff revived haven demand.
Still unconfirmed
- French turmoil contributed to the flight for safety alongside domestic market pressures.
What to watch next
- Upcoming Big Tech earnings reports from Alphabet, Microsoft, and Amazon.
- The upcoming FOMC decision and release of packed economic data.
confidence 100%Sources used for this update (16)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
- www.bitget.com — Propland Price Prediction , PROPrice Prediction 2025
- www.tradingkey.com — Today’s Market Recap: OpenAI Revenue Concerns; Nasdaq Falls 1.25%, AAOI Drops 13.58%, Brent Gains 4.07%
- MarketWatch — ‘AI is on trial’: Bond yields sink below 5% as investors look for safety
- economictimes.indiatimes.com — Dow Jones| Nasdaq | S&P 500 | US Stock Market Today |Live Updates: Nasdaq crashes 2% as AI, oil risks drive flight to bonds
- WSJ — U.S. 10-Year Treasury Yield Falls Under 5% as French Turmoil Fuels Flight for Safety
- MarketWatch — Treasury yields see extreme plunge. Why investors are ducking for cover.
- Bloomberg.com — Treasuries’ Link to AI Shows Sharp Shift as Haven Trade Returns
- Financial Times — Winter arrives in markets
- CNBC — 10-year Treasury yield tumbles below 5% to lowest level in nearly a month
- CNBC — 10-year Treasury yield drops back to 5% this week as investors seek cover from AI worries
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