Tech giants’ financing surges hit record highs, while the yield on 30-year U.S. Treasury bonds reaches a near two-decade high! The AI supercycle enters a new phase of “capital equals compute.”

Sales of U.S. investment-grade bonds hit record highs for the third consecutive month, maintaining the fastest issuance pace in the market as artificial intelligence infrastructure spending drove corporate borrowing. Data compiled by institutions showed that high-grade bond supply reached $145.2 billion in August, surpassing the total of $136 billion in the same period of 2020.

Futu Integrated09:08

Trump: No rush to end Iran conflict; warns of 'heavy bombing' if Oman hinders negotiations, as Iran signals shift to all-out offensive

The 60-day negotiation window under the US-Iran ceasefire agreement expired on August 17. Trump stated that he would not extend the memorandum of understanding, asserting there is "no timetable" for resolving the Iran issue and demanding that Iran "surrender unconditionally," while acknowledging that Iran "will not reach the kind of agreement he deems necessary." Iran, in turn, warned that it would impose a naval blockade on the United States and carry out precise military strikes if diplomatic efforts failed. US Special Envoy Jared Kushner described communications with Iran as "positive and productive," but acknowledged that the two sides had "not yet reached a consensus."

wallstreetcn06:11

Hedge funds have purchased U.S. stocks for five consecutive days, with a short squeeze in the technology sector driving the second-fastest buying spree of the year.

U.S. equities continued their upward trend, driven by broadly moderate inflation data and a strong rebound in the technology sector. In response, hedge funds launched the second-fastest concentrated buying campaign of the year. On August 17, according to the latest weekly report from Goldman Sachs Prime Brokerage, hedge funds recorded net purchases of U.S. stocks on every trading day last week, with the pace of buying reaching the second-highest level in the past year (+2.1 standard deviations). The buying activity was primarily driven by long positions in individual stocks, complemented by short covering in macro products. The information technology sector attracted the largest single-sector capital inflow, with short covering in software stocks being particularly prominent—this sector had previously been the...

wallstreetcn3minutes ago

Futu Morning Brief | US-Iran stalemate adds inflation uncertainty, pressure on long-term bonds continues to mount; Morgan Stanley says AWS revenue could reach $1 trillion in the next decade; US urges South Korea to prioritize investment in memory chips; X

Overseas holdings of U.S. Treasury securities fell by $72.1 billion in June, with simultaneous declines in Japan and China; Anthropic's annualized revenue surpassed $65 billion, accelerating commercialization ahead of its IPO.

Futu News08:10

Castle Securities: Fed’s Decision to Hold Rates Steady Sparks Concerns; Long-Term U.S. Treasury Yields Approaching 20-Year Highs Amplify Market Risks

Castle Securities believes that the Federal Reserve's reluctance to further tighten monetary policy, despite inflation remaining persistently above target, is keeping long-term U.S. Treasury yields at multi-year highs and may pose sustained risks to broader financial markets.

Zhitong Finance07:56

30-Year U.S. Treasury Yield Hits Highest Level Since 2007: Oil Prices, Fiscal Deficit, and AI-Driven Bond Issuance Push Long-End Rates Higher

On Monday, the yield on 30-year U.S. Treasury bonds briefly rose above 5.31%. Corporations have issued substantial debt to support the AI boom, exacerbating the supply-demand imbalance in the long-duration bond market. In August, U.S. investment-grade bond issuance reached $145.2 billion, surpassing the monthly record of $136 billion set in August 2020. Meanwhile, the U.S. government's annual fiscal deficit of nearly $2 trillion continues to drive up the supply of Treasury securities.

wallstreetcn07:13