US Treasury yields fall sharply on AI jitters

US Treasury yields headed for their biggest daily drop since August 2025 on Thursday, as investors flocked to safe-haven government debt in the face of an AI-driven tech selloff.

A sharp drop in tech stocks sent a chill through global equity markets, as crowded bets on data centres and other key AI plays faced a reckoning from high and rising interest rates.

That selling has boosted demand for safe-haven government bonds, which has pushed US yields down across the curve.


Ten-year Treasury yields were last down 11 basis points on the day at 5.08%, heading for their largest one-day decline since early August 2025 and around their lowest since late September. Two-year yields were down 7 bps at 4.73% .

Yields on other major economy bonds such as Germany, France and the UK, also fell.