The Globe and Mail reports in its Friday edition that the recent rise in Treasury yields in part reflects growing investor bets that an obscure, theoretical rate consistent with stable growth and inflation is moving higher. A Reuters dispatch to The Globe says that some believe the so-called R-star, which is a rate that neither stimulates nor restrains economic activity, might be higher than the latest data indicate. Analysts estimate it has risen as the U.S. economy absorbs a strong mix of capital spending tied to artificial intelligence and heavy government borrowing. The R-star moving higher suggests that interest rates may settle at structurally elevated levels, adding to pressure on bond prices. Still, analysts could not give an exact estimate of the level as the measure can be calculated using different methods and relies on trailing data. The likely culprits for higher R-star could be the heavy investment around the AI build-out by hyperscalers like Amazon.com, Microsoft and Alphabet's Google, and higher government debt levels, both of which can boost demand for capital and lift real yields. The debate matters because if R-star is indeed higher, it could point to higher-for-longer interest rates.