US Treasury Yields Experience Significant Drop

On Monday, the United States Treasury bonds saw a notable decrease in yields. This shift was largely influenced by the sudden rise of a new Chinese AI startup, DeepSeek, which has caused a stir in the US tech market.

DeepSeek's Impact on Tech Stocks

DeepSeek, a new AI application from China, quickly climbed to the top of Apple's App Store charts, leading to a significant drop in the stocks of several US tech giants, including Nvidia and ASML. This development has raised concerns about the competitive landscape of AI technology.

Market Reactions and Bond Futures

Following the news, the two-year note yield fell by 7.6 basis points to 4.204%, while the 10-year Treasury bond yield plunged by 11 basis points to 4.525%, marking the lowest since December 20. Conversely, bond futures saw an increase, with the two-year note rising by 0.14%, the 10-year bond by 0.61%, and the 30-year note by 0.97%.