US tech giants' AI borrowing could push up Europe's bond yields

US companies could become a significant source of bond issuance in European markets next year, raising the prospect of additional pressure on European bond yields.

The companies, whose euro-denominated offerings are known as “reverse Yankees,” could account for between €80 billion and €90 billion of next year’s supply. Hyperscalers are expected to make up most of that total.

Hyperscalers at the center of expected issuance

The projected volume highlights the potential scale of US corporate borrowing in Europe. While the source does not identify individual issuers, it says hyperscalers will represent the largest share of the expected supply.

For European bond markets, the estimate points to a substantial pipeline of issuance from companies headquartered in the United States. The additional borrowing could affect the market’s supply profile and contribute to higher bond yields.

Why the estimate matters

The €80 billion-to-€90 billion projection provides an indication of how large reverse Yankee issuance could become next year. Its impact will depend on the amount of borrowing that ultimately reaches the market, but the potential scale makes US technology companies an important part of the European issuance outlook.

For now, the estimate describes a possible level of supply rather than a confirmed total. The central issue for investors is whether the expected borrowing from hyperscalers and other US companies creates enough additional supply to push European bond yields higher.