# High Bond Yields Put Governments’ AI Growth Bet at Risk

2026-08-06T17:41:23+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Thirty-year bond yields in the US, France, Japan and Britain are near their highest levels since the 2007-09 global financial crisis, the Hindustan Times reports. Sticky inflation, large budget deficits and geopolitical risks are keeping borrowing costs high. In the US, a one percentage-point rise in bond yields could add interest costs equal to 1.3% of annual GDP within a decade. Governments increasingly appear to be relying on AI-driven growth to manage their debts. Goldman Sachs estimates data-centre investment at $1 trillion this year, adding to demand for capital. Yet AI has not measurably lifted productivity so far. The gains could also bring job losses, lower tax receipts from labour, higher welfare costs and greater defence spending, limiting any fiscal benefit.

## Coverage

- hindustantimes.com <https://www.hindustantimes.com/business/governments-are-making-a-dangerous-bet-on-the-ai-boom-101786005244192.html>

Tags: AI, bond yields, fiscal policy, inflation, public debt
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