US 10-year Treasury yield fell below 5% — CNBC

In the United States, the yield on 10-year government bonds fell below 5% on Thursday for the first time in a month. On Friday, it rose by 4 basis points to 4.997%.

Reaction to risks in the technology sector

Investors increased demand for US Treasuries amid a sell-off in technology stocks and concerns over the large debts technology companies are taking on to build artificial intelligence networks, CNBC reports. Yields on already issued debt securities of technology companies rose, while credit default swap spreads for a number of AI-related companies widened.

BMO strategists explained that the sell-off in technology stocks prompted demand for higher-quality assets. They also noted that the move intensified amid weakness in the French sovereign bond market.

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Yields on other government bonds and oil

The yield on two-year US government bonds, which is more closely linked to the Federal Reserve's short-term policy, rose by 5 basis points to 4.692%. The yield on 30-year securities increased by 3 basis points to 5.31%.

Markets were awaiting the Federal Reserve's interest rate decision next week and watching preliminary S&P Global business activity indexes in manufacturing and services. At the same time, rising energy prices supported inflation concerns: December-delivery WTI oil futures rose by 1.16% to $100.61 per barrel, while Brent gained 0.79% to $114.06.