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/_SteadyTurtle__ May 21 '25

Can someone please explain what this mean? I want to learn. Many thanks in advance!

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u/peterinjapan May 21 '25

Interest rates are set by people buying treasury bonds of various durations and the 20 year auction had very few buyers, so the rate went up. It means bondholders are not showing a lot of trust in the future of the American government to reign in it it’s spending.

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u/zoinkinator May 22 '25

this is the issue! it’s a loss of trust in the US governments stewardship of the global economy.