AI just sold more bonds in eight months than in all of 2025
“We expect real yields to continue rising until they choke off the borrowing which has been driving them – and the rotation into risk which has been fuelling the equity rally,” he wrote in a note.
Ashok Bhatia, chief investment officer at Neuberger, said US real yields remained below the 3 to 4 percent range where he expects them to bite into growth.
“But today’s level is a warning sign that growth, while currently solid at 1.5 percent to 2 percent, could start to be threatened,” he said.
The borrowing reflects a build-out now surfacing in output data.
Britain’s economy grew 0.4 percent in the second quarter, and the information and communications sector delivered almost half of that expansion, more than any other industry, the Office for National Statistics said.
