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    3. 30-Year Rates at Highest Since 2007: How AI Debt is Catching Up to Bitcoin

    30-Year Rates at Highest Since 2007: How AI Debt is Catching Up to Bitcoin

    By: journalducoin.com|2026/08/22 08:00:00
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    A troubling figure, a debt that doesn't back down. The yield on 30-year U.S. bonds has climbed above 5%. This is a level not seen since 2007, the year before the global financial crisis. The cause is no longer just budgetary. Giants of artificial intelligence are now borrowing at a pace that is shaking up the entire bond market, and Bitcoin finds itself caught in the crossfire. Key points of this article: * The yield on 30-year U.S. bonds has reached a historic level of 5%, an unmatched peak since 2007. * Giants of artificial intelligence have intensified their borrowing, disrupting the bond market and impacting Bitcoin. The 30-year yield is back to its 2007 levels. The figure is dizzying. On August 14, the 30-year yield closed at 5.25%, its highest of the year. The 10-year yield is around 4.68%, up nearly 0.5 points since January 2. This rise is not coincidental. According to economists at Bank of America, about 0.3 points of this increase can be attributed solely to the supply of corporate and mortgage debt. For the 10-year, this new supply would alone account for nearly 60% of the movement observed since January. The U.S. federal deficit has reached $1.8 trillion in the first ten months of the 2026 fiscal year, which is $169 billion more than last year according to the Congressional Budget Office. Washington is not borrowing less. It is simply borrowing in an increasingly crowded market. How the debt of hyperscalers now competes with Treasury bonds. In 2025, this figure rose to $131 billion. By the end of July 2026, it had already reached $192 billion. One sector now accounts for 27% of all net bond issuances in the United States. Nomura Securities estimates that tech borrowing today equals about 25% of net Treasury bond sales to private investors. A year ago, this ratio was five times lower. Some issuances are staggering. Alphabet recently placed a 30-year debt at around 6.4%, which is 1.15 points higher than a comparable Treasury bond. A bond intended to finance a Meta data center paid over 7.5% last month. Moreover, the five largest hyperscalers have already issued $159 billion in bonds in 2026, compared to an annual average of only $28 billion during the 2020-2024 period. The bill is just beginning. JPMorgan Asset Management projects $5.5 trillion in AI-related capital expenditures by 2030, of which $2.1 trillion will be financed by new bonds. The Treasury's bet has propelled Bitcoin this week. It is in this tense context that Treasury Secretary Scott Bessent attempted a maneuver. On Wednesday, he announced the doubling of the long bond buyback program, from $2 billion to at least $4 billion per operation. A gesture to calm a bond market that has been on edge for months. The bet worked, at least temporarily. Bitcoin surged to $75,750 on Friday during Asian trading, driven by a spectacular short squeeze and a temporary easing of long yields. This led some observers to say that the crypto market was finally catching a breath. However, Barclays has quantified the limits of the exercise: Bessent's shift towards more short debt would reduce the net supply of long bonds by about $440 billion this year. Meanwhile, borrowing by hyperscalers is expected to grow by $474 billion over the same period. Bitcoin, a collateral hostage in a bond showdown. The underlying mechanism remains the same. A bond pays a coupon. Bitcoin does not. When an investor can secure 6% or 7% with Alphabet or Meta, two of the most profitable companies in the world, Bitcoin must beat this yield just to remain competitive against idle cash. Over the twelve months leading up to this week's rally, Bitcoin had posted a decline of over 46%. Gold, on the other hand, had risen by over 32% during the same period. A gap of nearly 79 percentage points between the two safe-haven assets, in favor of the yellow metal. The upcoming long bond auctions from the U.S. Treasury will reveal whether buyers truly have room to finance both Washington and Silicon Valley. In the meantime, U.S. public debt has already surpassed $40 trillion as of August 20, a day before Bitcoin climbed back above $75,000.

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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