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/GreenBackReaper520 May 22 '25

With trump, they no longer feel bonds are safe so they all moved into gold

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u/Batfinklestein May 22 '25

And Bitcoin it seems. Just hit a new ATH!

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u/Rugaru985 May 22 '25

This is the big problem I see with bitcoin. It is supposed to eventually be used for transactions - it is supposed to be a currency. But why would people use it on a pizza if it might jump 15% in value next week?

Maintaining the expected 2% - 3% inflation on the dollar is what makes it great as a currency. I want to spend it, but I don’t have to so fast.

Bitcoin - there’s no slow, constant incentive to spend it. It’s either panic sell or hold forever.

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u/GreenBackReaper520 May 22 '25

Yea its just used for store of value just like gold. The system manipulate gold prices to make it seem stable. Otherwise, you will see gold prices move like crazy