Oil Prices, Resilient Growth Fuel Higher Treasury Yields

Oil prices and resilient US economic growth are driving up Treasury yields, according to Payden & Rygel. The firm notes that hyperscalers' continued AI-related capital expenditures are fueling US growth, with total tech spend on track to surpass $800 billion in 2026. While investors have expressed skepticism about the sustainability of capex-driven growth, Payden & Rygel has heard similar concerns for three years running.