The bond market faces continued pressure as tech giants flood fixed-income markets with new debt to fund AI ambitions. Morgan Stanley estimates roughly $570 billion in global AI-related debt issuance for 2026; by the end of May, $236 billion of that had already been priced, a pace approximately four times faster than the same period last year. Nvidia issued $25 billion in bonds in June, and Amazon followed with its own $25 billion offering in July, with Amazon sweetening the deal with extra yield to attract buyers. The order coverage ratio for hyperscaler bond issuances sat at nearly 5x back in February, but by July, that ratio had dropped below 2x. Alphabet and Meta saw their bond spreads widen by 0.12 and 0.16 percentage points, respectively, after substantial issuances. The tech sector now constitutes approximately 10% of the Bloomberg Corporate Bond Index, up from 9% in 2024. For existing bondholders, rising yields on new issuances translate directly into mark-to-market losses on their current holdings.