AI Fears Drive Investors to Bonds, Best Week Since February

Investors rushed into U.S. government bonds this week, pushing Treasury prices up and borrowing costs down. The move marks the best week for Treasuries since February. The shift came as concerns about artificial intelligence (AI) stocks cooled a recent sell-off in the bond market. Borrowing costs had climbed to their highest levels in decades before falling back. When investors worry about risky assets like AI-related stocks, they often move money into government debt, which is seen as a safe place to park cash. That demand pushed bond yields lower. The week's reversal shows how quickly market sentiment can change. Just days ago, bond yields sat at multi-decade highs. Now, Treasuries are posting their strongest weekly performance in months.