WS #16358
Key US Treasury bond yields have fallen below the 5% mark as capital rotates out of high-growth technology stocks and into safer government debt. This flight to safety is a direct response to the geopolitical escalation in the Middle East and the tech sector's correction. The decline in yields supports defensive sectors and real assets like gold, while increasing borrowing costs for highly leveraged growth companies, further pressuring the valuation of unprofitable AI startups.
Treasury Yields and Market Rotation
Key US Treasury bond yields have fallen below the 5% mark as capital rotates out of high-growth technology stocks and into safer government debt. This flight to safety is a direct response to the geopolitical escalation in the Middle East and the tech sector's correction. The decline in yields supports defensive sectors and real assets like gold, while increasing borrowing costs for highly leveraged growth companies, further pressuring the valuation of unprofitable AI startups.