Hotter-than-expected CPI/PPI/retail data should, in theory, push Treasury yields higher, but the bond market fell on Thursday. It’s the same old story: the AI debt-bubble crisis and inflation. Leading AI tech companies have guaranteed one another’s debt to fund data-center expansion. Now interest rates are surging and financing costs are rising. Can AI revenue keep growing at the same pace? I won’t go over the explanation again here—you can check out my previous articles. In short, money is flowing out of tech stocks and into healthcare, consumer staples, and gold as a safe haven. The Fed remains in a bind: inflation is high, so rate cuts are out of the question; employment is weak, so it also can’t hike rates aggressively. All it can do is keep rates high.