Driven by safe-haven purchases triggered by the sharp drop in AI concept stocks, US Treasury bonds soared, and the 10-year yield fell below 5%. This wave of gains drove US bond yields of various maturities down by up to 16 basis points, and 5-30 year yields all hit their lowest level in nearly a month. In addition to safe-haven demand, the cooling of market expectations for the Fed's interest rate hike next year has also boosted treasury bond trends. Investors are worried that if AI investment momentum weakens, it may be difficult to sustain the US economy, so even though oil prices rise again, capital will still pour into the bond market. Michael Chang, Citibank's interest rate derivatives strategist, said, “Despite the rise in oil prices that day, US Treasury bonds still showed the characteristics of safe-haven assets.” The stock price of the US semiconductor company, which is seen as a trend vane for AI investment sentiment, resumed falling on Thursday. The Philadelphia Semiconductor Index once fell sharply by 6.3% to its lowest level since the end of July. The next trend in US bonds may depend in part on higher oil prices and concerns about AI stock trading which one prevails. Eugene Leow, senior interest rate strategist at DBS Bank, said: “Market sentiment seems to be fluctuating recently as investors re-evaluate AI-related assets. US Treasury yields are still high by recent standards, and investors may want to hedge against some of these risks by buying US bonds to hedge against some of these risks.”

Driven by safe-haven purchases triggered by the sharp drop in AI concept stocks, US Treasury bonds soared, and the 10-year yield fell below 5%. This wave of gains drove US bond yields of various maturities down by up to 16 basis points, and 5-30 year yields all hit their lowest level in nearly a month. In addition to safe-haven demand, the cooling of market expectations for the Fed's interest rate hike next year has also boosted treasury bond trends. Investors are worried that if AI investment momentum weakens, it may be difficult to sustain the US economy, so even though oil prices rise again, capital will still pour into the bond market. Michael Chang, Citibank's interest rate derivatives strategist, said, “Despite the rise in oil prices that day, US Treasury bonds still showed the characteristics of safe-haven assets.” The stock price of the US semiconductor company, which is seen as a trend vane for AI investment sentiment, resumed falling on Thursday. The Philadelphia Semiconductor Index once fell sharply by 6.3% to its lowest level since the end of July. The next trend in US bonds may depend in part on higher oil prices and concerns about AI stock trading which one prevails. Eugene Leow, senior interest rate strategist at DBS Bank, said: “Market sentiment seems to be fluctuating recently as investors re-evaluate AI-related assets. US Treasury yields are still high by recent standards, and investors may want to hedge against some of these risks by buying US bonds to hedge against some of these risks.”