Strong 10-year auction pulls Treasury yields off a 2002 high as AI borrowers' bonds hit record lows

The S&P 500 slipped 0.22% to 7,801.77 while $39bn of 10-year notes drew the best demand in over a year, yet bonds tied to SpaceX, Oracle and Meta's data centres slid to fresh lows at 5%-plus borrowing costs

Deepakshi Sharma

Kristal Research

8 Oct

Key takeaways — AI summary

US stocks eased from records: the S&P 500 fell 0.22% to 7,801.77, the Nasdaq Composite 0.22% to 27,538.69, the Dow 0.66% and the Russell 2000 1.27%; industrials dropped 2.14% (Caterpillar -5.7%), health care rose 1.06%
The 10-year Treasury yield touched about 5.36%, its highest since 2002, before a $39bn auction priced at 5.300% with the strongest demand in over a year and dealers taking an unusually small share; the 10-year ended flat at 5.29%
Bonds of AI's biggest borrowers slid to record lows — SpaceX (reportedly raising $40bn via an Apollo-led vehicle for Nvidia chips), Oracle (on a delayed Wisconsin data centre) and Meta's Project Beignet, which fell to 91.67 from about 110 a year ago; Meta stock fell 2.4%
September Fed minutes were hawkish — all 19 officials backed the hike to 3.75–4.00% and most expect another by year-end; a NY Fed survey showed one-year inflation expectations at 3.9%, the highest since May 2023
WTI crude fell 1.30% to $88.28 as the IEA backed faster emergency stock releases of about 100 million barrels, though Brent rose about 2% above $102 in Asia on a reported White House request for Iran strike options; gold recovered 0.71% to $4,140 after hitting its lowest since August 3

Generated by Kristal AI · reviewed by the research desk

The full newsletter

Related research

Kristal PulseNew

S&P 500 sets first record since August as AI money rotates into optics and power

The index closed up 0.58% at 7,818.93 while Constellation jumped 12% on a Google power deal and Seagate fell 9% on takeover chatter.

Deepakshi Sharma7 Oct2 min

Kristal ReadsNew

MongoDB Is in the Wrong Drawer

MongoDB fell 29% in six weeks on a quarter beat and its CEO's exit to Meta, but the note argues the real question is whether a usage-based database gets paid more as AI agents do more work.

Kristal Research Desk6 Oct15 min

Kristal PulseNew

Nasdaq hits a record even as the 10-year yield touches a 24-year high

The Nasdaq rose 1.05% to a record 27,477 and the S&P 500 added 0.66% on Monday, while the 10-year Treasury yield touched about 5.35% intraday, its highest since 2002; Schneider Electric's $205-a-share cash bid for PTC lifted software.

Deepakshi Sharma6 Oct2 min