Tatton says rising government bond yields threaten to test AI-led equity rally

By Public Technologies
  • Tatton Asset Management flagged rising long-term government bond yields as a growing risk to equity valuations, putting the AI-led tech rally on notice.
  • UK 20-year inflation-linked bonds yield about 2.6% above inflation; US 10-year inflation-linked yields sit near 3.2% above inflation.
  • Wider credit spreads signaled tighter liquidity, raising refinancing costs and increasing the risk of pressure on price-to-earnings multiples.
  • A reported OpenAI annualized revenue miss at USD 50 billion versus USD 70 billion expectations briefly hit chip stocks before a metrics clarification reversed most losses.
  • Tatton said the earnings season is the key near-term test, with markets needing either stronger profit growth or lower yields to stabilize sentiment.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Tatton Asset Management plc published the original content used to generate this news brief on October 09, 2026, and is solely responsible for the information contained therein.

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