Definition
The interest rate the US government pays to borrow, set by buyers in the bond market.
The story
Bond prices and yields sit on a seesaw. If investors rush to buy Treasuries, prices go up and yields go down. If they sell, prices drop and yields rise. That's why you'll read "yields rose" on a day when bonds were being sold.
Why markets watch it
Yields set the tone for borrowing costs everywhere, and rising yields have tended to weigh on rate-sensitive stocks and on gold.
See it in the story
Connects to
Treasury bills, notes and bondsYield curve2-year vs. 10-year yieldReal interest rateBond prices and yieldsTerm premiumMortgage rates
Last seen in
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms