In simple terms
A Treasury yield is the yearly return on a bond issued by the United States government. It is quoted as a percentage.
The government fixes the interest payment when it sells the bond. The yield moves afterward, because the price investors pay for that bond keeps changing in the open market.
How it works
Price and yield move in opposite directions. If a bond’s price falls, the same fixed payments cost less to buy, so the return rises. The US Securities and Exchange Commission describes it as a seesaw.
The Treasury publishes a par yield curve every trading day. It is built from bid side price quotes that the Federal Reserve Bank of New York gathers at or near 3:30 p.m. New York time, and the rates are usually posted by 6:00 p.m.
The curve uses 13 input maturities, from 4 week bills up to 30 year bonds. Round maturities are interpolated, so a 10 year rate exists even when no bond has exactly 10 years left to run. Other governments publish their own curves, including UK gilts, German bunds and Japanese government bonds.
Why it matters
The 10 year Treasury yield is a reference point for borrowing worldwide. Mortgage rates, corporate bond rates and the price of riskier assets are all judged against it.
It also reads as a verdict. A climbing yield can mean investors expect higher inflation, heavier government borrowing, or both.
Where you’ll see it
- Market reports quoting the movement of “the 10 year”
- News about mortgage and business loan pricing
- Central bank and finance ministry commentary
- Pension fund and insurance company reporting
Example
The Federal Reserve’s H.15 release put the 10 year Treasury constant maturity yield at 4.97 percent on September 15, 2026.
Often confused with
A yield is not a coupon. The coupon is the fixed payment set when the bond is issued. The yield is what that payment is worth at today’s price.
Key facts
- The daily Treasury par yield curve is built from 13 input maturities, running from 4 week bills to 30 year bonds.1
- Input prices are indicative bid side quotes collected by the Federal Reserve Bank of New York at or near 3:30 p.m. each trading day, with rates usually published by 6:00 p.m. Eastern time.1
- Constant maturity yields are interpolated, so a 10 year rate is available even when no outstanding security has exactly 10 years remaining.2
- The 10 year Treasury constant maturity yield was 4.97 percent on September 15, 2026, and the 30 year was 5.34 percent.2
- Market interest rates and the prices of fixed rate bonds generally move in opposite directions.3
This entry explains a financial term. It is not financial advice.
Go deeperHow Do Interest Rates Affect the Economy?Related concepts
In the news
Quick checkIf a Treasury bond's market price falls, what happens to its yield?Show answer
It rises. The payments are fixed, so a lower purchase price produces a higher return.
Sources
- U.S. Department of the Treasury. Treasury Yield Curve Methodology. 18 February 2025 (accessed 16 September 2026)
- Board of Governors of the Federal Reserve System. H.15 Selected Interest Rates (Daily). 15 September 2026 (accessed 16 September 2026)
- U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy. Investor Bulletin: Fixed Income Investments, When Interest Rates Go Up, Prices of Fixed-Rate Bonds Fall. June 2013 (accessed 16 September 2026)
Editorially reviewed by Specialty Digest Editorial TeamLast reviewed September 16, 2026Researched and drafted with AI assistanceReport an issue