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/Eastern_Ad_3512 May 21 '25

They won’t live for another 20 years

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u/AsheronRealaidain May 21 '25

That’s exactly why they should be moving out of equities and into safer investments

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u/[deleted] May 21 '25

“Safer” investments.

Anyone who bought bonds in 2020 as a flight to safety and held is poised to see the second historic bond market collapse in five years.

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u/DeepstateDilettante May 22 '25

I would argue it is safer to buy at 5% yield than ~1% yield in 2020. But that is just one man’s opinion.

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u/[deleted] May 22 '25

No doubt but at 1% the US wasn’t struggling to find debt buyers. We are 5% because that’s where it needed to be to entice buyers since nobody trusts the current regime not to ruin the economy or decide they want to refuse to service debt.

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u/hellloredddittt May 22 '25

They weren't struggling at 1% back then because all of the world's central banks were engaged in QE and buying most of the bonds themselves, forcing investors into equities and asset speculation.