Apollo Chief Economist Torsten Slok warns that whether AI successfully brings disinflation or fails and triggers risk aversion, U.S. Treasury yields will decline by 2027.
In his latest report on August 31, Torsten Slok pointed out that if AI commercialization succeeds, trillions of dollars in revenue for tech companies will generate a large-scale deflationary effect, pushing down long-term interest rates. If the AI bubble bursts, the Nasdaq index could plummet by 50%, and investors would flock to U.S. Treasuries for safety, similarly driving long-term yields sharply lower. Slok emphasized that the next six months are a critical window for the market to form a judgment on the trajectory of AI development.
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