AI Concerns Drive Bond Yields Lower as Investors Seek Fixed Income Safety

Investor anxiety over AI-related risks initially pressured markets, but Fed President Kevin Warsh's comments that AI boosts productivity helped ease concerns, prompting a shift into fixed income and pushing yields down. The move reflects a defensive rotation amid uncertainty over AI's economic impact, with Warsh's remarks providing a partial anchor. The sustainability of this yield decline depends on whether AI concerns resurface and on broader macro data.