Fund Manager: 10-year Treasury Bonds nearing 4% reflects market worries about AI.

Brigid Kurana, fixed income fund manager at Wellington Investment Management, said: "What really surprises me is that the stock market is basically at historical highs." However, he said that this year, some technology and software stocks have fallen by more than 20%. Kurana said: "I believe the bond market is capturing signals from this phenomenon." He said that the latest inflation and labor market data have alleviated some of the previous tensions that kept US bond yields high, and the Japanese bond market showing more signs of stability has had a similar effect. However, he said a major concern is that in the second half of this year, companies may need to start providing reasonable explanations for their spending on AI, or even reduce their workforce. "People are worried that unemployment may occur at some point." Data from FactSet shows that the benchmark 10-year US Treasury yield on Tuesday remained steady at around 4.05%, after briefly falling to 4.02% the night before. According to Dow Jones market data, this is about 10 basis points higher than the one-year low of 3.95% reached on October 22, 2025.