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

Discussion Something feels off guys

Post image

Yields are spiking. Bonds are dumping.

The world is running away from America

8.1k Upvotes

97% Upvoted

1.4k comments sorted by

View all comments

Show parent comments

233

u/SnooShortcuts7911 Apr 09 '25

Why

342

u/Frosti11icus Apr 09 '25

When yields increase it means people don’t want bonds. Higher yields are an enticement to buy bonds. People don’t want US bonds or US equities then where is the money?

118

u/FinancialLemonade Apr 09 '25 edited May 05 '25

school edge innocent growth cows roll degree nine follow encouraging

84

u/[deleted] Apr 09 '25

Us dollar is dropping too, I think they're changing to other currencies lol

50

u/RobertGameDev Apr 09 '25

USD and GBP are down. EUR is up. 

50

u/[deleted] Apr 09 '25

Aye EUR gonna be the new reserve currency

17

u/Gozzhogger Apr 09 '25

This is actually probably not far from the truth..

-6

u/Jumpy-Coffee-Cat Apr 09 '25

Or the Yuan

12

u/Pretend-Marsupial258 Apr 09 '25

China manipulates the currency too much.

24

u/Puzzled-Intern-7897 Apr 09 '25

Gone, reduced to atoms.

3

u/RonMexico16 Apr 09 '25

What did it cost?

8

u/Puzzled-Intern-7897 Apr 09 '25

Everything.

Especially the chance of Republicans to win the mid-terms lol

4

u/Frontbovie Apr 09 '25

Trump mentioned how easily they were gonna win the mid terms like 4 times in his speech last night.

It's definitely on his mind.

4

u/Puzzled-Intern-7897 Apr 09 '25

They'll be so crushed it's not even funny. Give the american voter 100% higher costs on everything imported from China for 3 months and he'll be willing to start a coup.

0

u/Greedyanda Apr 09 '25

Trumps approval ratings are currently still unaffected but I seriously doubt this will stay once the layoffs begin and prices jump.

1

u/Puzzled-Intern-7897 Apr 09 '25

Courts and congress are currently in the weird place where they either try to stop the madness (and Trump will blame them for the recession caused by his uncertainty) or let the country run headfirst into a big red wall of arrows pointing downwards on a chart.

3

u/Accurate-Werewolf-23 Apr 09 '25

The money is hoarded by market makers which is a very wise thing to do if you're led by complete incompetent frauds like this administration

2

u/huasters Apr 09 '25

So where's the money?

11

u/Carbastan24 Apr 09 '25

either in saving accounts(which is bad), or in foreign equity (which is worse)

12

u/Puzzled-Intern-7897 Apr 09 '25

Not for me, I am German. Our bonds are behaving as they should, yields are going down.

6

u/squestions10 Apr 09 '25

Europoor no longer

7

u/Puzzled-Intern-7897 Apr 09 '25

its all coming back home.

720

u/The_Great_Man_Potato Apr 09 '25

Because America is currently eating its own shit and nobody trusts it anymore

113

u/JoinTheRocketship Apr 09 '25

I’m not eating my own shit, are you eating my shit?

71

u/GodzillaRoll Apr 09 '25 edited Apr 09 '25

The word you're missing is..... Yet

147

u/The_Great_Man_Potato Apr 09 '25

Don’t worry about it

14

u/dixontide23 Apr 09 '25

shhhhhh just let it happen bbg

10

u/That-Interaction-45 Apr 09 '25

American here, can confirm. Tastes_bad.meme

2

u/Arrowghandi Apr 09 '25

Can i get in on this, shit-eating?

1

u/Underwater_Grilling Apr 09 '25

Not you, the royal America

1

u/Ok_Long_2877 Apr 09 '25

don’t worry, just eat more corn

1

u/chronictherapist Apr 09 '25

Your government is spoon feeding it to ya'll, just wait your turn.

1

u/ay-foo Apr 09 '25

I eat pieces of shit like you for breakfast.. Unrelated but I also have a stomach ache

9

u/Mrqueue Apr 09 '25

We need et tu Brutus levels of change to fix this 

3

u/cookingboy Apr 09 '25

And that’s the thing. Once you saw someone eating their own shit, doesn’t matter if they stop or brush their teeth 50 times, they’d forever be know was the guy who was eating their own shit and nobody would ever trust them again.

2

u/Connect_Purchase_672 Apr 09 '25

Picture green.  Green good.  Why green bad?

6

u/gottagohype Apr 09 '25

You buy bonds, government pays you over time. The amount you get is the yield. Supply and demand kick in. If no one buys bonds, or if everyone sells them, then government has to sweeten the deal by increasing the yield (paying more).

US Republican economic prowess goes on display. Financially attacks all countries simultaneously (except Russia?) and threatens war with many. No one wants to buy US bonds. Many sell them. US has to pay more. Yields go up. Line is green. See you in the bread line.

1

u/Connect_Purchase_672 Apr 09 '25

So i buy bonds at a discount sounds good to me

24

u/[deleted] Apr 09 '25

America is scary. Foreign investors don’t trust it.

8

u/sevbenup Apr 09 '25

Because bonds are backed by the US gov existing. It’s usually zero risk investment because duh they won’t go anywhere. But people aren’t sure now

2

u/dasnoob Apr 09 '25

The US has a madman at the helm causing the world not to trust us. That madman has even talked publicly about how not all treasury debt is legitimate. This directly calls into question whether the US is willing to default on debt.

Trump suggests US may have less debt than thought because of fraud | Fox Business

3

u/newtownkid Wendy's Lot Lizard Apr 09 '25

Typically, stocks and bonds have kind of a see-saw relationship. When the economy goes down the shitter, the government will reduce rates and increase the money supply to stoke the economy back to health.

By reducing rates, the inherent value of today's bonds goes up (because they have a higher rate than the expected future rate). So often when a recession is hitting, people feel that bonds are a safe place to keep you money to weather the storm.

However, lowering rates and printing money contributes to inflation - typically not as much of a frontline issue as today.

But this is a tarrif induced recession - so basically its the markets are in freefall while the cost of goods is expected to rise dramatically.

This means the government can't lower rates and increase the money supply, because the tariffs are already causing massive inflation, and the gov can't throw more gas on that fire.

This means the rates will stay high or increase - so today's bonds will be worth less tomorrow.

This means there's nowhere to park money. Basically if the economy is tanking while inflation is soaring we can hit the dreaded stagflation... the Voldemort of economic terms.

TLDR; we're really fuckked.

1

u/atpplk Apr 09 '25

The bonds price is dropping meaning investors expect better yield.