The takeaway
The market value of US Treasury securities is considered a benchmark for setting other borrowing costs, such as mortgages. It’s considered a benchmark because the US government has not failed to make good on its Treasury debt obligations. So it serves as a baseline for determining the value of other types of securities with higher default risks.
Defining the value of Treasury securities
Because of its importance to financial markets, the “market yield on US Treasury securities at 10-year constant maturity, quoted on an investment basis” is one of the most popular series in FRED. Let’s break down what these data measure, piece by piece.
- US Treasury securities are debt obligations issued by the US government. In this case, it is a Treasury note that pays a fixed rate of interest every six months for 10 years. Because it’s backed by the US government, it’s considered a very safe asset to own.
- Market yield is the return you’d earn if you bought the security today at its current market price and held it until you receive its last interest payment. Although the paid interest rate is constant, economic conditions change over time and the daily price of the security changes, too.
- The label “10-year constant maturity” is a way of reporting what a 10-year note, if issued today, would yield. It is calculated using the yields of other actively traded notes.
- “Quoted on an investment basis” means that the yield is reported as an annualized percentage return. That makes it easier to compare with other investments, such as corporate bonds or certificates of deposit.
Recent behavior of the 10-year Treasury yield
Our FRED graph plots data between May 2021 and May 2026. During that time, the lowest yield value was 1.19%, in early August 2021. Since then, yields have risen as high as 4.98% in October 2023, partly reflecting the more-restrictive monetary policy stance adopted by the Federal Reserve and a generally higher interest rate environment. Check out this recent FEDs note by Daniel Covitz and Eric Engstrom to learn more about the factors that shape long-term Treasury yields.
Want to explore more financial data? Check the Board of Governors of the Federal Reserve System H.15 Selected Interest Rates release in FRED.
How this graph was created: Search FRED for and select “Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis.”
Suggested by Diego Mendez-Carbajo.