U.S. Treasuries Surge as Tech Sell-Off Triggers Safe-Haven Demand

U.S. government bond yields dropped significantly as technology equities experienced a sharp downturn, marking the largest simultaneous decline for both asset classes since April 2025. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) climbed 2.65% to $80.05 while 10-year Treasury yields fell approximately 17 basis points. In contrast, the technology-focused Invesco QQQ Trust (NASDAQ:QQQ) slid 5.52% to $709.80.

A slump in artificial intelligence shares prompted investors to seek shelter in Treasuries. Heightened concerns surrounding debt burdens weighed heavily on AI infrastructure firms. Shares of CoreWeave, Inc. (NASDAQ:CRWV) dropped 25.21% to $61.39 as its credit default swap spreads reached record levels of about 1,195 basis points and yields on its October 2031 bond exceeded 16%. Corporate bond sales from investment-grade companies, primarily driven by megacap tech firms, have reached around $1.7 trillion this year to fund AI projects, up 29% from the prior year.

Investors are watching whether government bonds will continue providing a portfolio cushion during stock market declines. Future direction will depend on incoming inflation data, Federal Reserve rate decisions, corporate debt issuance, and whether high financing costs curb technology spending.