What is the 10-year Treasury yield?

The 10-year Treasury yield is the yield or interest paid to investors who purchase 10-year Treasury notes. It rises and falls based on myriad factors, including inflation, monetary policy, and investor confidence. The 10-year Treasury yield helps investors track the cost of capital and financial market health.

Why is a 10-year Treasury bond a good investment?

The importance of the 10-year Treasury bond yield goes beyond just understanding the return on investment (ROI) for the security. The 10-year is used as a proxy for many other important financial matters, such as mortgage rates. This bond also tends to signal investor confidence.

What is a 10 year Treasury note?

The 10-year Treasury note is a debt obligation issued by the United States government with a maturity of 10 years upon initial issuance. A 10-year Treasury note pays interest at a fixed rate once every six months and pays the face value to the holder at maturity. The U.S. government partially funds itself by issuing 10-year Treasury notes.

What is the average 10-year yield for 2023?

As of early July, the 10-year Treasury yield was around 4%, which is slightly lower than some of the 10-year yields of mid-October 2022 that peaked at about 4.25%. So far, the average yield for 2023 is roughly 3.6%.