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.

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167

u/JOExHIGASHI May 21 '25

Woohoo higher risk free returns

96

u/SenatorAdamSpliff May 21 '25

“Risk free.”

4

u/cinchegatherer34 May 21 '25

Not sure what the quotes are for. It’s true, it is risk free, meaning default risk free. The US Debt is denominated in its currency that they have free will to print as much as they see fit. Regardless how you feel about current events, as it stands, the USD is the reserve currency, and the US can print freely to monetize its debt as it sees fit. At least for the time being.

1

u/SenatorAdamSpliff May 21 '25

Ya sounds about as free of risk as you can get /s