Bond yields at 5% are becoming the new norm, marking a fundamental shift for a generation of investors. Treasury Secretary Scott Bessent attributes recent Treasury selloffs to higher oil prices, expecting both to fall once the Iran war ends. However, multiple factors are driving borrowing costs higher, including $100-a-barrel oil, the AI spending boom, and widening US budget deficits contributing to a record $40 trillion debt load, all while the Fed aims to cool persistent inflation.

"We are in a new regime," said Samuel Martinez at Vanguard. "I'm still of the view that rates are moving higher until something breaks," added Jack Mc Intyre at Brandywine.

Meanwhile, Meta shares jumped 36% in September following the release of its Muse app, boosting confidence in its AI strategy and bringing the company close to a $2 trillion valuation. In Romania, a novel debt-financing campaign offers blood donors government bonds with interest rates over 7%, raising roughly $604 million since the start of 2025 to address both a blood shortage and budget deficit.