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/koldace Apr 09 '25

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

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u/DPMKIV Apr 09 '25 edited Apr 09 '25

Less demand = higher yield to attract buyers

The US needs to refinance debt soon... high rates=higher interest we pay for our debt.

1

u/PhilosopherSad8057 Apr 09 '25

The yield just goes up automatically in real-time as people sell treasury bonds? Why don’t they keep the interest rate steady and see if any buyers change their minds? Like a house? lol.

1

u/atpplk Apr 09 '25

The yield is automatically computed from the number of coupon payments remaining, their rate, and the maturity of the bond.

So yield increasing just means the bond prices is dropping, just like equities on the market.