The flood of new bonds to fund the artificial-intelligence build-out seems to finally be getting a little bit much for investors.
The extra yield, or spread, investors demand to hold bonds backed by AI hyperscalers moved broadly higher on Tuesday as Amazon issued $25 billion of bonds, returning to the U.S. debt market just four months after it completed a $37 billion bond sale.
The spread on Amazon’s 5.8% notes due in 2036 jumped to 0.7 percentage point from 0.63 percentage point on Monday, according to MarketAxess. The spread on Meta’s 5.25% notes due in 2036 increased to 0.93 percentage point from 0.88 percentage point.