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

- URL: https://stocks.freetheai.org/news/u-s-treasuries-surge-as-tech-sell-off-triggers-safe-haven-demand-94d6c2
- Published: 2026-10-19T11:00:00Z
- Category: markets; sentiment: mixed; impact: high
- Symbols: [NASDAQ:TLT](https://stocks.freetheai.org/symbols/NASDAQ-TLT), [NASDAQ:QQQ](https://stocks.freetheai.org/symbols/NASDAQ-QQQ), [NASDAQ:CRWV](https://stocks.freetheai.org/symbols/NASDAQ-CRWV), [NASDAQ:IEF](https://stocks.freetheai.org/symbols/NASDAQ-IEF)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

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.

## Key points

- U.S. 10-year Treasury yields fell about 17 basis points while the Nasdaq 100 dropped 5.5% in the same week.
- The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) gained 2.65% to finish at $80.05.
- The tech-focused Invesco QQQ Trust (NASDAQ:QQQ) dropped 5.52% to $709.80.
- CoreWeave, Inc. (NASDAQ:CRWV) fell 25.21% to $61.39 as five-year credit default swap spreads hit record highs.
- Investment-grade companies led by megacap tech have sold about $1.7 trillion in bonds this year.

## Questions and answers

### Why did Treasury bond prices rise as technology stocks fell?

A sell-off in AI technology stocks caused investors to move capital into government bonds as safe-haven assets. Additionally, trend-following funds covered heavily short bond positions, amplifying the rally in Treasuries.

### How did major bond and tech ETFs perform last week?

The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) gained 2.65% to $80.05 and the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) rose 1.14% to $90.42. Meanwhile, the Invesco QQQ Trust (NASDAQ:QQQ) dropped 5.52% to $709.80.

### What drove the decline in CoreWeave stock?

CoreWeave, Inc. (NASDAQ:CRWV) dropped 25.21% to $61.39 as record credit default swap spreads near 1,195 basis points and bond yields above 16% highlighted rising stress across AI debt obligations.