Global yields keep rising despite weak US data, with Barclays' Anshul Pradhan citing the $2tn federal deficit and hyperscalers tapping debt markets as key drivers. Big Tech firms have cut reliance on free cash flow to fund AI investments, turning to corporate bonds at unprecedented scale.

Goldman Sachs reports $1.5tn in US investment-grade issuance year-to-date, on track to surpass the $2.1tn pandemic-era record. Average deal size hits $1.7bn, with over 20 $10bn "jumbo" deals — two-thirds from tech. In 2025, only 12 such deals existed; 2022-2024 saw 15 total.

This bends credit markets toward longer tenors: 16.5 years for the big-five hyperscalers versus a 10.7-year average. Pimco's Lotfi Karoui notes Amazon and Alphabet bonds now act as alternatives to long-dated Treasuries, forcing investors to rethink sector concentration and duration hedging.

Index construction grows hyperscaler-heavy, mirroring equity market concentration. Apollo's Torsten Sløk warns of a public debt market capacity problem, suggesting private markets may relieve pressure. The corporate bond market is transforming mid-flight, with unclear long-term implications.