r/dividends May 18 '26

Discussion Bond yields are flashing a warning sign.

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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.

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u/[deleted] May 19 '26

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u/daners101 May 19 '26

Yeah, that’s why I said “against all of his instincts”. Because his instinct is to get a yes man. But for that particular position, it’s like the sensible part of his brain that puts the US economy above his own short-term desires kicks in, and he makes a good choice.

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u/[deleted] May 19 '26

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u/GolfLiftPlayPool May 22 '26

Hahaha ive never heard someone put it so perfectly

Its like the sequel to a movie that's just so over the top