According to the CICC Research Report, while AI is strong, traditional demand is gradually being pressured and squeezed out, so when might the positive externalities of AI not be able to offset the weakness of traditional demand? We estimate that this watershed could be around 6% of 10-year US debt. This also shows why the recent rise in interest rates on US bonds has not completely hurt overall growth, yet the erosion of some weak points has begun to occur. If it exceeds this inflection point, the positive externalities of AI cannot continue to hedge against negative externalities, causing overall growth to begin to be pressured, then the Federal Reserve may even need to start cutting interest rates.

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