The Globe and Mail reports in its Thursday edition that treasuries are benefiting from the artificial intelligence frenzy, as speculation about rapid AI development raises hopes for interest rate cuts if a significant productivity boom follows. A Reuters dispatch to The Globe reports that one rationale for the recent drop in U.S. government bond yields is more convincing than attributing it solely to January employment or inflation reports, as neither suggested the Fed should resume easing. As bond yields dropped to their lowest levels this year, Fed rate futures fell below 3 per cent for the first time in four months, suggesting a potential third rate cut. This shift has revitalized the bond market, which is now anticipating even more cuts ahead. Markets may be adjusting to the changing priorities of the Fed under Mr. Trump's nominee, Kevin Warsh, set to take charge in May. It is assumed that Mr. Trump's push for deep rate cuts will carry more influence. Up to now, however, investors have not been fully convinced about the impact of a Warsh-led Fed. A Bank of America survey of global fund managers earlier this month found almost 40 per cent expect his appointment to push Treasury yields higher and weaken the dollar.