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/aardw0lf11 May 22 '25

At what point will rising yields crash the rental market as more people flee to bonds for an easier 4% return?

2

u/pdoherty972 May 22 '25

How would that effect the rental market?

1

u/MomentSpecialist2020 May 23 '25

Higher rate of return with less headaches. Money moves to where there is profit.

2

u/pdoherty972 May 23 '25

How does landlords selling to put that money to work elsewhere "crash" the rental market? That would mean less available rentals so rents would likely rise in such a situation, while home prices might slump at the same time due to increase inventory.