The Robust U.S. Economy Powers Through Rate Hikes and Rising Bond Yields

AI-driven growth looks resistant to higher borrowing costs, spooking Treasury investorsThe U.S. economy keeps powering through inflation, tariffs and higher borrowing costs, defying a run-up in Treasury yields and a Fed rate increase. That has the bond market spooked. The usual economic brakes aren’t slowing growth, hiring or an AI investment boom that looks to be unstoppable. To some, AI’s potential returns seem so bright that even steep interest rates won’t slow down tech companies’ investments.The growth outlook helps explain the current predicament in the bond market: The yield on the 10-year Treasury note, which plays a critical role in...