4 Things That Caught My Attention Today... 1. The bond market is getting harder to ignore. The US 30-year Treasury yield has traded around 5.7%, with long-duration yields near levels we haven't seen in decades, while stress is building across European sovereign debt as well. French yields have surged and the spread over German Bunds has pushed back toward euro-crisis territory. This matters well beyond bonds. Mortgage rates, corporate borrowing, private equity and even the enormous amount of financing required for AI infrastructure all ultimately have to compete with these yields. 2. Nvidia just hit another record, trading around $239 and taking its valuation toward $5.7 trillion. And the underlying AI demand still looks enormous: Foxconn, Nvidia's biggest server manufacturer, just reported quarterly revenue of $95.4 billion, up 47% YoY, driven largely by AI server demand. Whatever you think about AI valuations, it's difficult to argue that the infrastructure spending hasn't been extraordinary. 3. But Michael Burry thinks investors are looking at Nvidia's numbers the wrong way. His latest argument focuses on Nvidia's claim that older GPUs are retaining significant value. Burry argues that the numbers being highlighted aren't actual resale transactions but estimates based partly on rental economics, and questions whether extending the assumed useful life of GPUs makes sense when each new generation promises dramatically better economics. Nvidia's counterargument is that older chips remain productive for years and rental demand remains strong. This debate matters because increasingly we're talking about GPUs not just as technology, but as collateral backing enormous amounts of AI financing. 4. Here's a number that surprised me: only around 2% of US households pay for a generative-AI subscription. Most paying households spend around $20 per month, and the average subscription has lasted roughly seven months. For context, PNC's data puts households spending on sports-betting apps at around 5%. That's an interesting contrast with the hundreds of billions being spent building AI infrastructure. Of course, consumer subscriptions aren't the entire monetisation story, enterprise and advertising matter enormously, but we're still incredibly early in figuring out exactly how all this infrastructure eventually gets paid for. Want to learn more about how we look at Price Action, Data and Flows? Check out FXE Trading Academy and our Foundations Course here: bit.ly/4yeG0go Patience. React, don't predict.