– This is the script of CNBC's financial news report for China's CCTV on October 08, 2026.

Beyond the winning yield hitting a fresh high, bid to cover ratio for this 10 year Treasury auction reached 2.77 times, marking its highest level since 2016. Although robust buyer demand briefly drove yields down to session lows following the auction, yield levels above 5% remain substantially higher than the historical norm over the past decade. A primary driver behind this shift is market concern that massive funding requirements fueled by artificial intelligence infrastructure investments are intensifying competition between corporate bonds and US Treasuries for long term capital.

Earlier reports indicated that Elon Musk's SpaceX is planning to raise 10 billion dollars through bank loans and 30 billion dollars via investment grade bonds to finance NVIDIA chip purchases. Previously issued bonds from the company maturing in 2056 were already trading at a yield 2.27 percentage points above benchmark Treasuries of equivalent maturity.

As a foundational benchmark for global asset pricing, elevated US Treasury yields will maintain downward pressure on equity valuations, particularly for tech growth stocks reliant on long term earnings expectations, while simultaneously raising corporate borrowing costs.

Overnight across US equity markets, all three major stock indexes closed slightly lower, snapping a prior multi day winning streak.

Additionally, a Financial Times report highlighted growing market concerns that corporations with weaker balance sheets could face immediate debt default pressures.

This month, borrowing costs for lowest rated US corporate issuers climbed to roughly 17%, reaching their highest level since May 2020. While AI related firms exhibit higher tolerance for elevated interest rates due to robust growth prospects and substantial capital reserves, international rating agency Moody's estimates that a record 1.45 trillion dollars in investment grade corporate debt will mature between 2026 and 2030. Should interest rates remain elevated while corporate earnings growth fails to offset rising capital costs, companies may be forced to execute deep cuts in capital expenditure.

EVANGELOS ASSIMAKOSInvestment DirectorRathbones "In the high yield space and the low quality end, you need to be very careful because a lot of the refinancing deals you know struck initially back in 2020 2021 are coming up for refi so at much higher rates. So it would not be a surprise to see default rates spike significantly. At the higher quality end, things are still fairly benign. But even there, one cannot be complacent." Furthermore, for non interest bearing gold, elevated bond yields mean an increased opportunity cost of holding the precious metal.

Consequently, international gold prices experienced downward pressure, briefly touching their lowest level since August 5th during intraday trading.

Analysts anticipate that gold prices will remain constrained in the short term by a strong US dollar and elevated US Treasury yields. However, sustained gold purchases by central banks continue to provide crucial underlying support, potentially propelling prices back toward roughly 4,400 dollars per ounce by year end.

MANPREET GILLChief Investment Officer, AMEEStandard Chartered Bank "I think gold, of course, in our mind, will continue this two steps forward, one step backward, you know, price pattern, because of the short term challenges from yields and the dollar. What you see in terms of emerging market central bank demand, that will continue to underpin gold."