Real borrowing costs across major economies have climbed to multi-year highs as heavy government borrowing and large technology companies AI spending increase bond supply. Rising real yields could challenge equity valuations by making fixed income more attractive, raising corporate funding costs and potentially slowing economic growth.

Rising bond yields, elevated leverage, and an ongoing correction in AI stocks are making the financial system more fragile.

LONDON, Aug 14 : Market gauges of inflation-adjusted borrowing costs have shot to their highest in more than a decade across major economies as AI companies and governments ramp…