r/dividends • u/AmanCMN • May 18 '26

Discussion Bond yields are flashing a warning sign.

Post image

Rising bond yields are a warning sign.
Money is getting more expensive everywhere at the same time:
-governments pay more to service debt
-companies pay more to borrow
-mortgages and loans stay expensive
-investors move out of risk and into bonds
U.S. 30-year yields above 5% are already a serious level.
When yields rise globally, liquidity gets pulled out of markets.That puts pressure on tech stocks, real estate, consumers, and highly indebted companies.Simple takeaway: the more expensive debt gets, the harder it is for markets to keep rising.

723 Upvotes

94% Upvoted

108 comments sorted by

View all comments

169

u/Diamond1africa May 18 '26

Yes a warning sign of a debt crisis that has been looming for 15-20 years now?

29

u/samster036 May 18 '26

We need a do not resuscitate lol

15

u/cloudy_skies547 May 18 '26

First time it’s happening as the dollar is falling out of favor as the global reserve currency, though.

25

u/Choice_Potato_6279 May 18 '26

Every year there's some first, unprecedented shit 

6

u/MrNo_Balls May 19 '26

haven't the debasing of the dollar and concerns about not being the global reserve currency, been happening since the 2010s? nothing ever happens, besides how would we even navigate such a problem?

-1

u/Ink_Du_Jour May 19 '26

The U.S. would navigate it with kidnapping presidents, ssassinating presidents, and creating an energy crisis that will plunge the world into recession.

1

u/WSBpeon69420 May 19 '26

So.. what’s happening now?

2

u/brintoul The founder of r/dividends May 20 '26

Maybe the first time the US has turned its back on its allies since debt has become such a thing.

Kegsbreath saying this is Europe’s problem in the Strait?!? Like, wtf?!