US sells 30-year bonds at 5% yield for first time since 2007

clearstack an hour ago | parent | next [-]

5% on the 30-year raises the risk-free rate, which changes the equity discount rate. a 40x stock looks very different at 5% vs 2%. growth stocks re-rate when yields move

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andsoitis 9 hours ago | parent | prev | next [-]

as debtor, you have to pay a higher price when the creditor's risk for non-payment increases. power of the market.

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dlcarrier 8 hours ago | parent [-]

The US can always print money; it's the expected inflation dictates the value of bonds.

	▲	nsvd2 3 hours ago \| parent [-]
		Well, yes, but that's another way of saying the same thing. If the US can't pay and is forced to devalue their currency, thus tanking the value of your investment, you lose money. Therefore, the likelihood of this drives interest rates up.

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ares623 9 hours ago | parent | prev [-]

What else happened in 2007?

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dlcarrier 8 hours ago | parent | next [-]

Nokia released the most useful phone ever sold: https://en.wikipedia.org/wiki/Maemo

Enthusiasts were still using it a and releasing updates, over a decade later.

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andsoitis 9 hours ago | parent | prev [-]

iPhone launch, the "Harry Potter" series finale, the Virginia Tech shooting, and the expansion of the European Union, amongst others.

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ares623 8 hours ago | parent [-]

All good omens (well except one). If history rhymes, I can rest easy.

	▲	lazide 4 hours ago \| parent [-]
		Good thing ‘08 never happened eh?