Well explained. The question is if they have to issue new bonds at higher rates and that's not so clear on social media. If the coupon stays the same, there hasn't been a price change.
Twitter "experts" are panicking over falling bond yields like itβs the end of the economy.
Spoiler: itβs not.
Hereβs how yields actually work.
Had to post this video on twitter because men in suits are perpetuating the notion that people are dumping treasuries.
I think we are all too plugged in.
https://blossom.primal.net/bf3f4aab34008a0988166e6b39123edca7c4e9ffde6175be4bedb521559a13ae.mp4
Discussion
True for new issuance, but the yields on these charts come from the secondary market. When prices go up, yields go down, even with fixed coupons.