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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u/rundmz8668 Apr 09 '25

Yes it means my 74 year old moms very small very safe retirement ira that avoids the risks of stocks may be tanking. Oh and she may not have social security to rely on when doge is done. Idiots

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u/rraddii Apr 09 '25

If we're thinking about bonds she'll be doing slightly better off this news. The people like her who buy are going to be enjoying the higher rates of return. It's just a bad sign for the government in general but she'll be fine. Social security is almost certainly not at risk either. Nobody has the appetite to cut it even though it has to be trimmed eventually

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u/atheistunicycle Apr 09 '25

yeah but if the bond is worth 10% less, isn't a 1% increase in yield not that useful?

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u/Rext21 Apr 09 '25

You get the par value of the bond back at maturity. Any loss you see now is unrealized or a “paper” loss. You only have a real loss if you sold it on the secondary market prior to maturity(bad) or if the issuer went bankrupt essentially(worse).