Money For the Rest of Us · Wednesday, August 26, 2026
Thirty-year U.S. Treasury bond yields have surged to their highest level since 2007, reaching 5.27%. This rise is partly attributed to the massive debt issuance required to fund the AI infrastructure buildout, estimated to be between $6 to $7 trillion, with a significant portion, around $4 trillion, being debt-funded.
“We've had 30-year treasury bond yields. The interest rate hit its highest level since 2007.”
“McKinsey, Goldman Sachs, JP Morgan estimate kind of around $6 to $7 trillion will be invested in AI data centers and infrastructure, that includes power infrastructure. 75% according to JP Morgan, funded through debt. That's about $4 trillion in new debt borrowings that competes with U.S. Treasury bonds.”
“30-year treasury yields have hit 5.27% just a couple days ago.”