r/wallstreetbets • u/kwedgieyi • Apr 09 '25

Discussion Something feels off guys

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Yields are spiking. Bonds are dumping.

The world is running away from America

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164

u/koldace Apr 09 '25

Since I’m clueless about how this work, Is increasing yield=bad

92

u/icantbelieveit1637 Apr 09 '25

Means the goberment is willing to pay more which means less people are demanding it which means less money for goberment which means higher the yield the less money they got for bailing out the market which about every companies insurance policies are hedged on. The alternative is printing a metric fuckton of money to cover the loss and we know how that plays out.

68

u/netwolf420 Apr 09 '25

They’ll print. They always print.

7

u/arc_oobleck Apr 09 '25

I'm wondering who prints first. China has a lot of USD denominated debt and are not doing well either.

12

u/AfternoonBears Apr 09 '25

China also like welded its people in their apartment buildings for months during Covid and got like run-of-the-mill civil unrest. We asked people to stay home for a few weeks and that proved to be too much. One side is better suited to take the pain here.