Article

The USA is facing increased borrowing costs due to a record wave of corporate bond issuances amid rising military expenditures. The ongoing conflict with Iran and the rapidly growing AI sector are contributing factors.

Recently, American companies issued over $65 billion in bonds in one day, the highest recorded, with Amazon raising approximately $37 billion to finance investments in AI infrastructure and data centers. This increase in corporate borrowing is leading to competition for investor capital, forcing the U.S. Treasury to offer higher yields to attract buyers.