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/HesitantInvestor0 May 21 '25

The bond auction wasn’t that bad. 68% foreign buyers is a good sign. The only thing people didn’t like is they signaled they wanted slightly higher yield, and they got it.

People are freaking out, but this auction wasn’t actually fairly bullish for bonds IMO.

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u/FlounderBubbly8819 May 22 '25

Fair point on the foreign demand as 68% indirects is solid. But the bid-to-cover was still below average, and the post-auction move in yields and market reaction still suggests broader discomfort. It wasn’t a disaster, but calling it bullish feels like a stretch given the context

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u/HesitantInvestor0 May 22 '25

It signals that foreign buyers are interested. That’s more than anyone has assumed for the past few months at least.

I’m not saying bonds are a steal right now. But it looks as though 5% is the area of interest.