Asia shares subdued, bonds swamped by AI debt wave

According to Business Recorder, Asian stocks eased on Thursday as sovereign bond markets came under further pressure. Reports that several large technology firms were preparing to borrow heavily, competing for a limited pool of funds, added to the strain. Oil's fresh rise also weighed on Treasuries, although a firm US 10-year auction overnight pulled yields back from 24-year highs.

The Wall Street Journal reported that SpaceX, Broadcom and Oracle had sought funds to purchase AI chips. Broadcom's financing target stood at $50 billion, whereas SpaceX intended to sell $30 billion of investment-grade paper and borrow $10 billion to purchase chips from Nvidia, itself a major SpaceX shareholder. The cost of insuring SpaceX debt against default reached a record, and its shares and bonds fell.

Federal Reserve minutes released Wednesday showed a majority of officials saw another increase as probable before the year ends, while markets assign 80% odds to a December move. Ten-year Treasury yields edged up to 5.298% after reaching a 24-year peak of 5.326% overnight, while the euro, close to 17-month lows, traded at $1.1198 after losing 0.6%. Gold, which pays no interest, was left at $4,105 an ounce, near two-month lows, after suffering as higher yields weighed on it.