US tech borrowing in euros may pressure European bond markets

thestar.com.my —

European bond markets face new pressure as US technology companies increasingly borrow from European investors to fund AI spending, potentially raising costs for other firms and governments. Alphabet launched its second euro-denominated bond sale this year on Monday, following a €9 billion issue in May. Investors expect Meta, Amazon, and Microsoft to follow, with Fidelity estimating €40-60 billion in pipeline issuance. US tech-related borrowing has reached $250 billion this year, up 81%, while European issuance totals $39.3 billion. BNP Paribas forecasts euro investment-grade supply to rise 83% by 2027, with jumbo deals potentially testing investor demand and widening credit spreads.


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