Prof G Markets · Friday, October 2, 2026
Steve Eisman posits that the substantial debt issuance for AI-related projects is creating a crowding-out effect in the Treasury market, contributing to higher yields. He estimates around $500 billion in AI debt being raised this year, competing with Treasury issuance and making borrowing more expensive across the board.
“And is a 500 billion dollar issuance this year and it's having a crowding out effect of the treasury markets you know if there if there was no ai None. Uh, the tenure would be much lower.”
“Now, I'll add on top of that $500 billion in AI debt, and there's a bit of a competition, which didn't exist before. So I think one of the reasons why the 10-year is as high as it is is because, like I said, there's a crowding out effect where AI debt is crowding out treasury, which is a crazy statement because nobody had crowded out treasury before. But now they are.”