Bond yields have climbed to around 6%, creating a more attractive environment for savers and investors seeking returns on their money. The higher rates mean those holding bonds can expect better income from their investments at current yield levels.
However, the rise in yields is stoking concerns about the health of the wider economy. Observers worry that economic growth outside the artificial intelligence sector may be slowing, suggesting that strength in the tech industry is not translating across all parts of the economy.
