AI capex now moves the interest rates that price it.
With roughly a third of the buildout debt-financed and hyperscaler operating cash flow barely covering capex, bond markets now cite AI data-center borrowing among the drivers of 22-year-high Treasury yields while CDS markets reprice the whole complex's funding structure ahead of any demand event.
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The debt-financed share of the buildout has grown large enough that its issuance wave moves bond-market positioning and pricing.
The long end closed September at 5.29%, a 22-year high, precisely as the buildout's marginal buyer turns to debt financing — the capex now moves the rate that discounts it.