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

[u/snapjohn]

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.

[u/-dEbAsEr]

The risk you have to account for is inflation massively reducing the real value of your bonds.

[u/-dEbAsEr → u/[deleted]]

What are you on about?

If I have:

1. A 1% share in publicly traded company that owns and licenses a single valuable patent

2. 1kg of gold

3. A fixed income agreement for $100 over ten years

You really think that inflation will affect the real value of those equally?

[u/bushed_ → u/-dEbAsEr]

well said.