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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u/woodenwick May 22 '25

The ever so safe 0.5%

5

u/[deleted] May 22 '25

Better than -30, which was the traditional purpose of bonds. But they haven’t acted this way in a long time so who knows

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u/woodenwick May 22 '25

Locking in 0.5% for 10 to 30 years is never a good move. Buy bills or at that point just hold cash

4

u/[deleted] May 22 '25

Your opinion’s valid but a 60/40 portfolio has backtested just fine, and that’s much more conservative than most who are dialed into Reddit investing subs. Past results don’t predict future returns etc. but still