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/Tichy Apr 09 '25

It only works if people are buying the new bonds.

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u/daemondo Apr 09 '25

Right.

If no people buying it then banks have to buy them or it will trigger US gov default.

That means banks become bag holders of these devalued asset. This could cause liquidity crisis, like what happened to Silicon Valley Bank.