- Bonds gain as China’s DeepSeek sparks AI, tech concerns
- State and local debt present haven, attractive absolute yield
Municipal bonds rose alongside Treasuries Monday as investors rushed into haven assets after the rapid ascent of a Chinese AI startup rattled the US stock market.
Benchmark state and local government yields fell as much as 6 basis points as of 4 p.m. New York Time on Monday. Those on 10-year securities dropped 6 basis points to 3.07%, the lowest since Dec. 18, according to data compiled by Bloomberg.
Investors sought safety in fixed income after Silicon Valley heaped praise on China’s ChatGPT rival, DeepSeek, while technology behemoths Nvidia Corp. and Oracle Corp. plunged alongside chipmakers.
Bloomberg Markets
By Elizabeth Rembert
January 27, 2025