Christian Stracke, president of PIMCO, stated on October 2, 2026 that capital demand from hyperscalers and the wider AI ecosystem is driving real rates and bond yields higher, rather than inflation expectations. Hyperscaler capital expenditure is estimated at nearly 690 billion dollars for 2026, projected to climb to 870 billion dollars in 2027, up from approximately 480 billion dollars earlier in the year. Consensus estimates as of late September 2026 predicted approximately 500 billion dollars in additional AI-related credit supply over the next 12 months. The 10-year Treasury yield has risen toward 4.75%, touching the upper limit of a multi-year range. According to PIMCO’s analysis, this pressure could weigh on lower-quality borrowers while supporting high-quality fixed-income investments over the long term.
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