TLDR:
- Big Tech bond issuance is projected to hit $320 billion in 2026, a 60% jump from last year.
- Corporate bonds now offer investors roughly 200 basis points more yield than US Treasuries.
- Foreign central banks now hold just 12% of the Treasury market, down from nearly 40% in 2008.
- Central banks bought over 4,000 tons of gold since 2022, lifting reserves to 27% of holdings.
A record Big Tech debt boom is reshaping bond markets this year. Combined issuance from firms like Meta, Amazon and NVIDIA reached $320 billion. That volume now represents almost 70% of total US Treasury issuance.
The surge coincides with rising Treasury yields and a quiet pivot toward gold among global central banks.
Big Tech Debt Boom Reshapes Treasury Yields
Big Tech bond issuance, including special purpose vehicles, is set to rise sharply in 2026.
The Kobeissi Letter reports a $120 billion year-over-year increase, or 60% growth. That share of Treasury bond issuance is expected to reach roughly 70%. It marks more than double the 30% recorded in 2025.
The jump is even starker against 2024 levels. Big Tech debt issuance this year is nearly nine times larger than it was two years ago. Companies are borrowing heavily to fund artificial intelligence infrastructure. That spending includes data centers, chips and cloud capacity.
Big Tech is now competing directly with the US government for long-term debt buyers. Investors are demanding higher compensation to hold this expanding pool of corporate debt.
Corporate bonds currently offer around 200 basis points more yield than Treasuries. That gap is pulling capital away from government debt.
Treasury yields have climbed as a result. Competition for the same investor base is intensifying. Big Tech firms show no signs of slowing their borrowing pace. The Kobeissi Letter describes the trend as a structural shift in debt markets.
Central Banks Pivot From Treasuries To Gold
Long-term Treasuries have delivered troubling returns over the past decade.
The Macro Paper reports a 10-year rolling return near negative 2% annually. That marks the weakest performance for the asset class in roughly a hundred years. Investors holding the bonds for ten years ended up losing value over that stretch.
Foreign central banks once held close to 40% of the Treasury market back in 2008. That share has since fallen to just 12%, according to Cory Klippsten of Swan.com.
Long-term Treasuries just delivered their worst ten-year return in a hundred years.
Negative 2% a year, before inflation.
Even the 1970s were better. Now look at what central banks did over the same period. https://t.co/GgG3KSbCei
— Cory Klippsten
Swan.com (@CorySwan) September 5, 2026
Foreign holdings stopped growing even as total US debt expanded rapidly. Domestic investors and the Federal Reserve absorbed much of the difference instead.
Gold purchases by central banks accelerated during the same stretch. Buyers added more than 1,000 tons in 2022, 2023 and 2024 alone. Another 863 tons followed in 2025, marking the strongest sustained buying since 2009. Total accumulation topped 4,000 tons across four years.
Gold’s value climbed alongside the buying spree. By the end of 2025, gold made up 27% of global official reserves. Treasuries accounted for just 22% over the same period. At 2023 gold prices, Treasuries would still lead the comparison, 26% to 16%.
European central banks have also moved gold reserves out of US vaults this year. Norway’s sovereign wealth fund is reportedly reviewing cuts to its Treasury holdings.
Both moves point toward a broader shift in reserve strategy among major economies. Neither institution has fully abandoned dollar-denominated assets.
The post Big Tech Debt Boom Pushes US Treasury Yields to Record Highs appeared first on Blockonomi.
