10-year Treasury yield drops back to 5% this week as investors seek cover from AI worries

A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City, on April 7, 2025. Timothy A. Clary | Afp | Getty ImagesInvestors ran for cover this week as artificial intelligence fears hit stocks, driving the 10-year Treasury below 5%. The benchmark yield stayed below 5% on Friday, after falling beneath that level Thursday for the first time in a month, as investors continued to express misgivings over the massive debt being taken on by technology companies to finance their build out of AI networks. Tech stocks sank, bond yields on outstanding tech debt rose and spreads on credit default swaps widened in a host of AI companies. "The selloff in tech stocks drove the flight-to-quality bid, compounded by continued weakness in the French sovereign market," BMO's credit strategy team said in a note Friday. "Interestingly, the focus on weakness in the equity market ... [has] overshadowed the move in the energy market, with Treasuries rallying despite WTI crude oil testing $100/bbl."On Friday, yields on 10-year U.S. Treasurys — used to price mortgages, auto loans and credit card debt — rose by 1 basis point to 4.966%.The yield on the 2-year Treasur...