The recent selloff in US 10-year Treasuries seems excessive; 5.3% may be a interim top in the short term. Only if it breaks higher would 5.5% come into view, so the scope for a further sharp rise in yields is limited and bond prices are likely to stabilize.
The host believes higher risk-free rates will hit AI capital expenditure; sharply higher borrowing and debt costs raise the hurdle for returns on AI investment and may suppress corporate enthusiasm for investment.