US Market: Rising R-star adds to pressure on US Treasury yields as AI investment, borrowing lift demand for capital

US Treasury yields are rising partly on expectations that R-star, the economy’s neutral interest rate, may be structurally higher. Heavy government borrowing and AI investment are boosting capital demand, potentially keeping rates elevated longer. A higher R-star could limit Federal Reserve rate cuts, pressure Treasury prices and increase borrowing costs across the economy.

PhysicsWallah shares surge over 4% after Motilal Oswal initiates coverage with Buy rating. Should you buy?

PhysicsWallah shares surged over 4% after Motilal Oswal initiated coverage with a ‘Buy’ rating and a Rs 200 target price, implying about 66% upside. The brokerage highlighted the company’s capital-efficient model, strong online presence and scalable offline network, while projecting revenue and EBITDA growth through FY28 and flagging competition, execution and AI-related risks.