US Yields Fall Despite Hot PPI Amid AI Fund Liquidation Rumors

Key Facts

1US September PPI came in at 6.3%, significantly higher than the 5.3% expected.

2Rumors circulated about the collapse of an AI-focused fund with $40 billion AUM, impacting stocks like Nebius and Lumentum.

3US 10-year yields fell 9.9 bps to 5.09% despite the hot inflation data.

US 10-year Treasury yields fell 9.9 basis points to 5.09% despite the release of robust inflation data. According to investinglive.com, the US Producer Price Index (PPI) for September reached 6.3%, significantly higher than the 5.3% forecast. The decline in yields followed circulating rumors regarding the collapse of an AI-focused investment fund with $40 billion in assets under management.

The market reaction impacted several technology stocks, with NBIS closing at $186.01 and LITE closing at $896.33 on October 14, 2026. CRWV closed at $65.78 on the same date amid reports of struggling debt and concerns over systemic credit risks within the AI sector, which prompted a flight to quality in the bond market regardless of the hot inflation print.