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FINANCIAL TERMS
Treasury Yield
Description
Treasury yield means the return investors earn from holding U.S. government debt.
In simple terms, it shows how much interest the U.S. government pays to borrow money.
Treasury yields are important because they influence mortgage rates, loan rates, stock valuations, bond prices, and investor expectations about the economy. When Treasury yields rise, borrowing costs often rise too.
For example, if the 10-year Treasury yield rises, mortgage rates and other long-term borrowing costs may also move higher.
Treasury yield is not the same as a bond price. When bond prices rise, yields usually fall, and when bond prices fall, yields usually rise.