The bond market is sounding an alarm, with investors increasingly wary of AI financing costs and the risks associated with certain European sovereign debts. According to CNBC's analysis of FactSet data, the five-year credit default swap (CDS) spreads for CoreWeave, Oracle, SoftBank Group, and for France and Italy have all widened.

Among them, AI infrastructure company CoreWeave's five-year CDS spread reached 1,065.84 basis points on October 21, reflecting market concerns about its highly leveraged expansion capabilities. Oracle's spread rose to 308.25 basis points on the same day, while SoftBank's spread neared a four-year high of 432 basis points on October 20. NVIDIA CEO Jensen Huang stated on Thursday that Neocloud demand is "exceptionally strong" but warned of "capital scarcity."

Meanwhile, pressure in the French sovereign debt market has surged, with investors demanding higher compensation for financing public debt. France's five-year CDS spread reached 89.8 basis points on October 21, surpassing Italy's. The French 10-year government bond yield broke above 5% for the first time since 2002. Moody's is scheduled to review France's Aa3 sovereign rating on October 23, which currently has a negative outlook. S&P Global warned on October 19 that AI-related debt risks for major cloud providers might be higher than publicly acknowledged.