Dallas Fed: AI data center debt issuance equals ~1/8 of Treasury duration supply
_onionesque · x · 2026-10-16
A Dallas Fed note analyzes how AI data center financing—estimated at $3-5T over 3-5 years, with $500-600B internally funded so far—impacts duration supply in US fixed income markets, via IG bond issuance, private credit loan swaps and crowding out of financial issuers. Commentators note hyperscalers have issued $300B+ of IG bonds in 2026, roughly 1/8 of Treasury duration supply, adding only 0.03-0.08% in interest burden.
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