Shenchao TechFlow news: On June 30, Apollo Chief Economist Torsten Slok issued a warning that AI hyperscalers are issuing debt financing at a large scale, which may be diverting the market’s demand for U.S. Treasury bonds and other credit assets. The current scale of AI-related bond issuance is expected to be as high as approximately $700 billion. How the market will digest such a massive amount of new supply is prompting debate, and this could create a “crowding-out effect” on other fixed-income assets.



Torsten Slok believes that if AI infrastructure financing continues to expand, the capital allocation structure of the bond market may change, thereby putting pressure on demand for U.S. Treasuries and overall credit market liquidity.
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