AI is disinflationaryBut first there will be massive spending on chips and power to build it, creating near-term inflation
Well the second-leg of that thinking took a big hit from DeepSeek, as it shows that training AI is more technique than power. Since the open sourced it, others will piggyback on the technique and perhaps refine it even more.
Now obviously layered on that today is a huge flight to safety with tech getting crushed but this move could also mark a top in yields. This might be your last chance at 4.50% for 10 years for awhile.
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