Paul Krugman has written in "The Beclowning of Scott Bessent" that Bessent has demonstrated that he is the Baghdad Bob of Bonds confirming my conclusions in my article "Bessent's Treasury Buyback are Inept and Misguided". Bonds have continued to rise destroying Bessent's belief he "runs the house" and can control the bond market and has proven contrary to the actions of the Federal Reserve.
Krugman observes interest rates are reaching new highs and specifically mentions AI growth as one of the culprits.
Interest rates have multiple drivers complicated currently by tariffs, diesel prices, oil prices and the illegal Iranian undeclared war which has no achievable end point, and AI growth investment with its demand for more and more debt to fund the investment. This affects bonds world wide. If and when the AI Bubble bursts, bonds will suffer, AI companies will have liquidity issues, as the whole stock market declines --- and not just in the Unites States.
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