Digital COVID: How AI Will Crash Treasury Yields Like It’s March 2020 All Over Again

Special Edition

February 27, 2026

In March 2020, the 10-year Treasury yield crashed from 1.9% to 0.31% in six weeks. It was the fastest collapse in the history of the U.S. bond market. The cause was simple: a biological virus physically removed hundreds of millions of workers and consumers from the economy overnight. Demand evaporated. Velocity of money collapsed. The bond market priced in a deflationary catastrophe and the Fed responded with the largest monetary intervention in history.

We are about to witness the same dynamic — but this time the virus is digital.

AI is not gradually displacing workers over decades the way previous technologies did. It is removing them from the economy in compressed timeframes that more closely resemble a pandemic shutdown than an industrial transition. When Klarna replaces 700 customer service agents in months, not years. When 696,000 job cuts are announced in the first…