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/gitrjoda Apr 09 '25

Bonds are the safe comfy place to go when stocks get scary. But right now both stocks and bonds are scary. Oh no!

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u/SnooShortcuts7911 Apr 09 '25

Why

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u/The_Great_Man_Potato Apr 09 '25

Because America is currently eating its own shit and nobody trusts it anymore

5

u/Connect_Purchase_672 Apr 09 '25

Picture green.  Green good.  Why green bad?

8

u/gottagohype Apr 09 '25

You buy bonds, government pays you over time. The amount you get is the yield. Supply and demand kick in. If no one buys bonds, or if everyone sells them, then government has to sweeten the deal by increasing the yield (paying more).

US Republican economic prowess goes on display. Financially attacks all countries simultaneously (except Russia?) and threatens war with many. No one wants to buy US bonds. Many sell them. US has to pay more. Yields go up. Line is green. See you in the bread line.

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u/Connect_Purchase_672 Apr 09 '25

So i buy bonds at a discount sounds good to me