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META’S AGGRESSIVE AI CAPEX PLANS NOW HAS BOND MARKET FUNDING

ADMIN || 31st October 2025

Meta’s aggressive corporate spending plans for artificial intelligence have filtered into the Treasury market today. Meta Platforms’ six-part corporate bond offering has lent to higher UST yields. Yields on 10yr USTs are uniformly higher with 10s up almost 2 bps to ~4.1%, after touching 4.114%, the highest since Oct. 10 and that’s after their biggest gain since June on Wednesday.

While yields fluctuated in Tokyo and London, they hit session highs in New York trade after Meta said it planned to raise $30 billion to fund its growth plans for AI. It offered notes from five to 40 years in length thus the issuance is impacting the entire curve.

The details are as follows:

Meta bond sales is the largest US high grade corporate bond sale in CY25.

Meta has more than doubled 3Q capital expenditures, and it sees fiscal outlays at $70b to $72b, up from prior estimates of $69.3b. But the stock investors of Meta are uncomfortable with this increase in capex. Today Meta stock fell by more than 13% after Zuckerberg said it’s possible his company overshoots and gets too much capacity.

After Oracle’s 18 BN USD bond issuance in late sept, Meta’s today’s bond issuance implies that primary credit markets also stand to benefit more from AI once funding ramps up further. But it will have repercussions on UST yields too as seen in today’s yield movement.

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