Big Tech AI Borrowing Surge Adds Pressure to Bond Markets

Alphabet, Amazon, Meta, Microsoft and Oracle have issued roughly $220B in debt this year to finance AI data centers and model development, more than double last year's amount.
The borrowing surge is adding supply to bond markets as U.S. yields trade around their highest levels since 2002.
Higher government bond yields can feed through into borrowing costs across mortgages, auto loans, student loans and corporate financing.