Mohamed El-Erian, a renowned economist, stated that governments and hyperscale tech companies like Alphabet, Amazon, Meta, Microsoft, and Oracle are issuing a large volume of bonds to support their rapid spending, but a lack of reliable buyers is driving up bond yields. He noted that these five tech giants have issued $132 billion in bonds this year for AI development, far exceeding the approximately $35 billion per year seen between 2020 and 2024. El-Erian believes this is primarily due to an imbalance in supply and demand fundamentals, rather than inflation or issues with the Federal Reserve's credibility.

Meanwhile, Norges Bank Investment Management sent a letter to Norway's Ministry of Finance last Friday, proposing to reduce its government debt holdings from 70% to 50%, which includes divesting approximately $80 billion in U.S. Treasury bonds.