AI Borrowing Adds Pressure to Asia's Bond Markets

Dow Jones10-15

0413 GMT - The AI investment boom is contributing to pressures lifting Asian borrowing costs, the IMF says. Heavy debt issuance by AI-related companies, alongside worsening fiscal positions in major economies, has helped raise the extra compensation investors demand for holding longer-term bonds. Long-term sovereign yields have risen 40-60 bps across most Asian economies this year. Domestic concerns, including perceived fiscal risks in Japan and policy uncertainty in Indonesia, have added pressure in some markets. Even so, overall regional financial conditions remain relatively accommodative, it says.

 

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