10-2 Year Treasury Yield Spread Market Daily Insights: Daily Treasury Yield Curve Rates (2024)

FAQs

What is the yield of the 10yr 2yr Treasury spread? ›

10-2 Year Treasury Yield Spread is at -0.38%, compared to -0.37% the previous market day and -0.51% last year. This is lower than the long term average of 0.87%.

10 Year Treasury Rate is at 4.59%, compared to 4.67% the previous market day and 3.58% last year. This is higher than the long term average of 4.25%. The 10 Year Treasury Rate is the yield received for investing in a US government issued treasury security that has a maturity of 10 year.

The 10-year yield is used as a proxy for mortgage rates and is also seen as a sign of investor sentiment about the economy. 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 Daily Treasury Par Yield Curve Rates" are specific rates read from the daily Treasury par yield curve at the specific "constant maturity" indicated. Thus, a yield curve rate is the single yield at a specific point on the yield curve.

10 Year-3 Month Treasury Yield Spread is at -0.78%, compared to -0.82% the previous market day and -1.61% last year. This is lower than the long term average of 1.14%.

Why is the 10-year to 2-year spread important? Many investors use the spread between the yields on 10-year and two-year U.S. Treasury bonds as yield curve proxy and a relatively reliable leading indicator of a recession in recent decades.

Government debt and the 10-year Treasury note, in particular, are considered among the safest investments. Its price often (but not always) moves inversely to the trend of the major stock market indexes. Central banks tend to lower interest rates in a recession, which reduces the coupon rate on new Treasurys.

To calculate the price, take 180 days and multiply by 1.5 to get 270. Then, divide by 360 to get 0.75, and subtract 100 minus 0.75. The answer is 99.25. Because you're buying a $1,000 Treasury bill instead of one for $100, multiply 99.25 by 10 to get the final price of $992.50.

Interest income, which is typically paid on a semiannual basis. Whether this income is taxable will depend on the issuer. Interest from corporate bonds is generally taxable at both the federal and state levels. Interest from Treasuries is generally taxable at the federal level, but not at the state level.

Should I only buy bonds when interest rates are high? There are advantages to purchasing bonds after interest rates have risen. Along with generating a larger income stream, such bonds may be subject to less interest rate risk, as there may be a reduced chance of rates moving significantly higher from current levels.

Should you sell bonds when interest rates rise? ›

Unless you are set on holding your bonds until maturity despite the upcoming availability of more lucrative options, a looming interest rate hike should be a clear sell signal.

We sell Treasury Notes for a term of 2, 3, 5, 7, or 10 years. Notes pay a fixed rate of interest every six months until they mature. You can hold a note until it matures or sell it before it matures.

If you believed that the Fed would continue to taper its QE program while holding short-term rates near- zero, the yield curve might continue to steepen. Thus, you might wish to “buy the curve” by buying short-term and selling long-term Treasury futures – a yield curve “steepener.”

You can only buy T-bills in electronic form, either from a brokerage firm or directly from the government at TreasuryDirect.gov. (You can also buy Series I savings bonds through TreasuryDirect.gov.)

Buying through a bank, broker, or dealer

Individuals, organizations, fiduciaries, and corporate investors may buy Treasury securities through a bank, broker, or dealer. With a bank, broker, or dealer, you may bid for Treasury marketable securities non-competitively or competitively, but not both, for the same auction.

10 Year TIPS/Treasury Breakeven Rate is at 2.40%, compared to 2.40% the previous market day and 2.27% last year. This is higher than the long term average of 2.09%.

The United States 10Y Government Bond has a 4.608% yield. 10 Years vs 2 Years bond spread is -36.5 bp. Yield Curve is inverted in Long-Term vs Short-Term Maturities. Central Bank Rate is 5.50% (last modification in July 2023).

The bond spread or yield spread, refers to the difference in the yield on two different bonds or two classes of bonds. Investors use the spread as in indication of the relative pricing or valuation of a bond.

The United States 10 Years / United States 1 Year Government Bond spread value is -57.0 bp (last update 23 Apr 2024 2:15 GMT+0).