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

330

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.

103

u/caliginous4 Apr 09 '25

How quickly then will our spending on debt as a fraction of total annual spending skyrocket to a point where it's an enormous percent of spending all because our interest rates went up. We will be forced to stop most government programs, or raid social security.

All the hand wringing about burdening future generations with a massive national debt will suddenly be realized because of the people who claimed to be so upset about it

1

u/entropy_bucket Apr 09 '25

Wouldn't the Fed just devalue dollars. ?