Big AI Bets Could Shake Already Fragile Global Markets
Global markets may already be shaky, and large bets on AI could make them break. Bond yields, which move opposite to bond prices, fell sharply from multi-decade highs. On October 22 the 10-year US Treasury yield dropped almost 20 basis points, its biggest one-day fall since early 2023, as investors rushed to bonds.
Quick glossary10-year Treasury, basis points
- 10-year Treasury
- A loan the US government borrows from investors that is repaid after ten years, with interest paid along the way.
- basis points
- A tiny unit used to measure small changes in interest rates, where one hundred equals one full percentage point.
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