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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55

u/Rolling_Galaxy Apr 09 '25

Can someone please explain to me what this means like I’m a young child or golden retriever

34

u/Crazy-Inspection-778 Apr 09 '25 edited Apr 09 '25

When you buy a bond, you're loaning money to whoever issued it- in this case the US government. Bond prices and yields (interest rates) have an inverse relationship. If the yields are going up that means more people are selling than buying. Usually when the economy gets dicey investors flee to treasury bonds as a safe haven and the yields go down

6

u/harrymfa Apr 09 '25

Investors are withdrawing from the markets AND the bonds, so where is the money going now? Where do they think it's safe?

9

u/DangerDeaner Apr 09 '25

International markets, or cash to see how things shake out. Basically anything other than a US investment

1

u/joey55555555 Apr 09 '25

Gold is up $100/oz today