Global equity and debt double kill: 30-year US bond yields soared to 5.33%, and the AI industry chain suffered a severe setback
Comparing news, the global financial market has experienced sharp fluctuations. The European, American, Japanese, and South Korean markets have experienced a double slump in stocks and bonds, and the sharp rise in long-term US bond yields has become the focus of market attention.
In the Asian market, the sharp decline in the Korean stock market triggered a trading mechanism. The KOSPI index closed down 5.8%, SK Hynix fell nearly 10%, Samsung Electronics fell more than 8%; and the Nikkei 225 index closed down 3.16%. More than 5,000 A-shares fell, leading the decline in AI industry chain sectors such as semiconductors, computing power hardware, PCBs, memory, and CPO.
In terms of US stocks, the three major indices fell for the third consecutive trading day, and the Philadelphia Semiconductor Index fell nearly 5% in a single day. Shares of AI-related companies such as Micron Technology, Western Digital, SanDisk, Marvell, AMD, Intel, Coherent, and Credo experienced a sharp correction in stock prices.
According to market analysts, the core trigger for this round of sell-off comes from the rapid rise in global long-term bond yields. The 30-year US Treasury yield rose to 5.33% intraday, a record high since 2007. Meanwhile, French, German, British, and Japanese long-term treasury yields have all risen to multi-year highs, and global long-term capital costs are being repriced.
According to data from the US Treasury Department, the amount of US debt held by overseas investors fell to 9.299 trillion US dollars in June, a decrease of about 72 billion US dollars compared to May. Among them, Japan's holdings fell to 1.116 trillion US dollars, reducing their holdings by 26.4 billion US dollars in a single month; UK holdings fell to 939.9 billion US dollars.
As risk-free interest rates rise, the market is beginning to re-evaluate the AI industry's high capital investment model. Investors are concerned that continued expansion of data centers, GPU procurement, and infrastructure construction will require significant financing, and that higher capital costs may reduce future cash flow estimates for technology companies.
Currently, the market is concerned about three major variables: 30-year US Treasury yield trends, the Federal Reserve's judgment on long-term interest rate paths, and whether subsequent earnings reports from tech giants such as Nvidia and Broadcom can verify AI return expectations.
The US Treasury Department will issue 16 billion US dollars of 20-year US bonds at 1 a.m. Beijing time on Thursday. The market will pay close attention to the results of this issuance.
