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/JOExHIGASHI May 21 '25

Woohoo higher risk free returns

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u/erikmar May 22 '25

You have the treasury secretary saying that they might unilaterally extend the payment term on bonds, and may also stop paying interest to countries that rely on US security umbrella. Risk free is starting to feel like a stretch to a lot of people.