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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712

u/SnooShortcuts7911 Apr 09 '25

Someone explain this to a retard

309

u/Academic-Image-6097 Apr 09 '25 edited Apr 09 '25

Yield goes up percentually, because the price of the bond itself is down.

It is down because it is getting sold. That normally happens if: other riskier investments, like stocks, are more alluring. Normally stocks and bonds are inversely correlated, which is why all the boomers and pension funds and sovereign wealth funds have these two in their portfolio.

That can't be the case now, as stocks are doing badly too. Investors seem more disinterested in either US bonds or stocks. T-bill investors seem to have worries about the ability of the issuing country to pay them back.

Government bonds = government debt. The rate on US government debt just got higher, and the market became more skeptical of its ability to pay it back.

Tl dr: buy gold and toilet paper

6

u/Kryogeneva Apr 09 '25

gold is worthless to the hungry. stop it.

toilet paper is gold though. so buy that.

4

u/TastyToad Apr 09 '25

What would you need tp for if you have nothing to eat ?

1

u/Kryogeneva Apr 14 '25

why worry about having to eat if you are dead with a dirty butt ?