AI power demand

US Treasuries

2026-10-08 11:47:12

Options Traders Build Bullish Bets on Long-Dated Treasuries and Utilities as Yield Reversal Trade Gains Ground

A notable trade is taking shape in the U.S. options market: some investors are buying call options tied to long-dated Treasuries and utility-sector exchange-traded funds, positioning for a sharp drop in long-term interest rates. The activity has picked up after Treasury yields surged since September, suggesting that expectations for a reversal are starting to build. According to Dow Jones Market Data, call volume has risen in the iShares 20+ Year Treasury Bond ETF, or TLT, and in the Utilities Select Sector SPDR Fund managed by State Street. Interactive Brokers chief strategist Steve Sosnick said heavier call activity usually signals a bullish stance, and in TLT’s case the message is relatively clean: traders are turning positive on long bonds, which effectively means they are betting that long-end yields will fall. The move comes with benchmark yields near multi-decade highs. At publication time, the 10-year Treasury yield stood at 5.335% and the 30-year yield at 5.713%, while the 2-year yield was 4.814%. Long-duration assets have already taken damage. FactSet data showed TLT posted its worst monthly total return since December 2024 in September, and its third-quarter loss widened to nearly 9%. Sosnick also said utility-sector option flows are harder to read because they may reflect both rate-cut expectations and optimism tied to rising electricity demand from AI infrastructure.

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US Treasuries

2026-10-08 11:38:12

Options Traders Bet on a Reversal in Long-Term Rates, With TLT and Utilities in Focus

A clear directional trade is building in the U.S. options market as some investors position for a sharp drop in long-term interest rates. Recent data show rising call option volume in the iShares 20+ Year Treasury Bond ETF (TLT) and the Utilities Select Sector SPDR ETF, two assets that have been pressured by the surge in long-dated Treasury yields since September. According to Dow Jones Market Data, the pickup in bullish options activity points to growing expectations that the move higher in long-end yields may be nearing a turn. Interactive Brokers chief strategist Steve Sosnick said heavier call volume usually signals a bullish view on the underlying asset. In TLT’s case, that message is relatively straightforward: traders are turning more constructive on long-duration Treasuries and effectively betting on lower long-term yields. As of publication, the 10-year U.S. Treasury yield stood at 5.335%, while the 30-year yield reached 5.713%, both at multi-decade highs. The 2-year yield was 4.814%. The utilities trade is less clean. Sosnick said bullish positioning in the sector may reflect not only rate-cut expectations but also demand tied to AI infrastructure. He pointed to the recent jump in Constellation Energy shares after the company reached a nuclear power supply agreement with Alphabet, with Constellation accounting for 7.6% of the utilities ETF as of Tuesday.

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Peter Thiel

2026-08-24 02:28:15

Thiel Macro’s 13F shows nearly 72% of assets tied to AI-driven power demand

Peter Thiel-backed hedge fund Thiel Macro LLC has disclosed a sharply concentrated portfolio in its latest 13F filing, with most of its exposure linked to electricity demand tied to artificial intelligence infrastructure. The filing shows total holdings worth $418.7 million. Amazon accounted for 28.2% of the portfolio, or about $118 million, while the rest was largely made up of power generation and distribution names. Those utility-related holdings collectively represented nearly 72% of the portfolio, including Vistra at 18.1%, Vista Energy at 14.1%, as well as American Electric Power, DTE Energy, FirstEnergy, and CMS Energy. The filing also showed the fund had reported zero holdings in the previous two quarters, pointing to a new shift toward power as an investment theme. The positions were held as of June 30 and filed on Aug. 14. The report also noted that Amazon recently raised its 2026 capital expenditure plan to $220 billion, mainly for cloud and AI infrastructure, while AEP and FirstEnergy have both cited growing power demand from AI data centers in their regulatory filings.

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Bill Gates

2026-08-14 13:56:35

Bill Gates Meets SK and HD Hyundai Leaders on SMR and AI Power Demand

Bill Gates held a series of meetings in South Korea on Aug. 14 with SK Group Chairman Chey Tae-won, HD Hyundai Chairman Chung Ki-sun, and other major political and business figures, according to BlockBeats, citing Korean media. The talks focused on cooperation in small modular reactors, or SMRs, and power supply for artificial intelligence. In his meeting with Chey, Gates discussed ways to address rising electricity demand driven by the spread of AI data centers, the direction of the next-generation nuclear power industry, and the potential for U.S.-South Korea nuclear cooperation. SK and SK Innovation invested a combined $250 million in TerraPower in 2022, becoming the company’s second-largest shareholder. On the same day, SK Innovation signed a business cooperation agreement with TerraPower for sodium-cooled SMR projects. Gates also met Chung and Hyundai Engineering & Construction CEO Lee Han-woo to review progress on a previously signed commercial agreement. In May this year, the three companies agreed to work together on commercializing sodium-cooled reactors and setting up a division-of-roles structure.

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Taiwan

2026-08-14 09:03:32

Taiwan legislature clears nuclear restart referendum for Nov. 28 vote alongside local elections

Taiwan’s legislature on Aug. 14 approved a referendum proposal on restarting nuclear power, setting it for a Nov. 28 vote alongside the island’s nine-in-one local elections. The proposal passed the floor vote 59-51 and was one of three measures cleared that day, together with proposals on caning and earmarking traffic fine revenue. According to the report, the final referendum wording was significantly shortened during legislative negotiations. The approved question asks whether voters support the government using nuclear power to revive the economy and abolish the “nuclear-free homeland” energy policy. The report also said the original Kuomintang caucus version had included appeals tied to public health, electricity supply, power prices, defense resilience and AI industry development. The nuclear issue is being framed not only around electricity prices and supply stability, but also around rising power demand from AI data centers. Supporters cited a survey by the Taiwan Inspiration Association, or TIA, saying 79% of respondents leaned toward supporting the restart of Nuclear Four. For the referendum to take effect, yes votes must exceed 4,887,133 and also outnumber no votes. The report noted that a similar referendum on restarting Nuclear Three was held on Aug. 23, 2025, but failed because it did not meet the legal threshold.

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