To The Moon

What just happened with 20 yr bond $iShares 20+ Year Treasury Bond ETF(TLT)$ auction and $SPDR S&P 500 ETF Trust(SPY)$ ?

At 1 PM, US government tried to sell 20-year bonds to raise money.

But… investors didn’t want to buy them unless they got a much higher interest rate. That made bond yields jump — and that’s where the trouble started.

📉 Why does that make SPY fall?

Because when bond yields go up:

Investors can now get better returns with less risk from bonds.

So stocks suddenly look less attractive.

That means people sell stocks — especially expensive or growth-focused ones.

📊 How does this connect to SPY?

Think of stocks like a business that pays you in the future. When interest rates go up, those future payments are worth less today.

It’s like this:

Before: You were happy to buy a stock if it returned 8%, when bonds gave only 3%.

Now: If bonds suddenly give you 5% risk-free, that 8% stock doesn’t seem so great anymore.

So investors say: “I want a discount!” — and they sell stocks.

Result: Stock prices drop fast.

🧮 Simple analogy:

Imagine stocks are like buying a house that pays you rent in 20 years.

If interest rates jump today, that rent in the future is worth less.

So... you wouldn’t want to pay as much for that house anymore.

Same with $Apple(AAPL)$ $Microsoft(MSFT)$ $NVIDIA(NVDA)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Tesla Motors(TSLA)$ $Amazon.com(AMZN)$ $Meta Platforms, Inc.(META)$

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