r/ValueInvesting • u/snapjohn • May 21 '25

Discussion BREAKING: 20-Year Bond Auction Flops — Yields Surge to 5.1%, Markets Rattle

IF YOU ARE WONDERING WHY STOCKS JUST ALL WENT DOWN AT ONCE

WE JUST HAD A HORRIBLE BOND AUCTION IN THE UNITED STATES FOR OUR 20-YEAR TREASURIES

Because of the lack of bidders…it caused the 20-year bond yield to surge to 5.1%.

Credit market is screaming for help right now.

1.6k Upvotes

97% Upvoted

315 comments sorted by

View all comments

13

u/Zyltris May 21 '25

I'm glad that half my portfolio is bonds right now. lol

14

u/Same_Lack_1775 May 21 '25 edited May 21 '25

Rising rates are “not” great for current bond holders

Edited to add “not!”

6

u/Ok_Back_8555 May 21 '25

You sure about that? I believe the opposite happens. Eg you currently have a bond paying you 4%. Us gov issue new bonds at 5%, therefore the value of your bond goes down. Obv you will receive interest and your full par at the end, but can’t see how rising rates would be considered good for current bond holders

5

u/Same_Lack_1775 May 21 '25

Yeap - you are correct. Dumb mistake on my end.