WS #14722
The 10-year US Treasury yield has surged past 5.15%, its highest level since 2007, driven by the oil price shock reigniting inflation expectations and the market pricing in a hawkish Fed stance for the October meeting. This rapid rise in borrowing costs is acting as a drag on the broader equity market, particularly penalizing rate-sensitive growth stocks and high-multiple tech names that are already facing valuation headwinds. Despite macro volatility, institutional capital is flowing into digital assets and AI infrastructure. BlackRock's crypto ETFs attracted $1.58 billion in fresh capital, while Goldman Sachs raised its global data center capacity target to 217GW by 2030. These flows suggest that sophisticated investors are maintaining exposure to high-growth digital themes, decoupling from the broader rate-sensitive selloff.
Treasury Yields and Macro Rates
The 10-year US Treasury yield has surged past 5.15%, its highest level since 2007, driven by the oil price shock reigniting inflation expectations and the market pricing in a hawkish Fed stance for the October meeting. This rapid rise in borrowing costs is acting as a drag on the broader equity market, particularly penalizing rate-sensitive growth stocks and high-multiple tech names that are already facing valuation headwinds.
Despite macro volatility, institutional capital is flowing into digital assets and AI infrastructure. BlackRock's crypto ETFs attracted $1.58 billion in fresh capital, while Goldman Sachs raised its global data center capacity target to 217GW by 2030. These flows suggest that sophisticated investors are maintaining exposure to high-growth digital themes, decoupling from the broader rate-sensitive selloff.