what is a 10 year treasury yield

what is a 10 year treasury yield

1 year ago 42
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The 10-year Treasury yield refers to the return expected on 10-year Treasury notes sold today. It is the rate that the government pays investors that purchase the specific security. The 10-year Treasury yield is considered a marker for investor confidence in the markets, shining a light on whether investors feel they can make a higher return than the yield offered on a 10-year note by investing in stocks, ETFs, or other riskier securities. The 10-year Treasury yield is frequently in the news, as its used as a barometer or proxy for economic factors, including investor sentiment and mortgage rates. Changes in the 10-year Treasury yield tell us a great deal about the economic landscape and global market sentiment. A rising yield indicates falling demand for Treasury bonds, which means investors prefer higher-risk, higher-reward investments, while falling yield suggests the opposite. The 10-year Treasury yield also impacts the rate at which companies can borrow money. When the 10-year yield is high, companies will face more expensive borrowing costs that may reduce their ability to engage in the types of projects that lead to growth and innovation.

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