Surging Treasury yields, with the 30-year above 5.3% and the 10-year near 4.8%, are squeezing low-rated corporate borrowers as tech giants flood fixed-income markets with AI-driven bond sales. Rising supply from a $40 trillion debt, waning foreign demand and massive corporate issuance are widening spreads and lifting default rates around 2%. Treasury buybacks offer only temporary relief while riskier issuers face acute refinancing pressure.
