Investors and those following the movement of interest rates look at the movement of Treasury yields as an indicator of things to come. Their rates are considered an important benchmark: Because Treasury securities are backed by the full faith and credit of the U.S. Treasury, they represent the rate at which investment is considered risk-free.
Click on the links below to find a fuller explanation of the term.
| This week | Month ago | Year ago | |
|---|---|---|---|
| One-Year Treasury Constant Maturity | 0.08 | 0.08 | 0.73 |
| 91-day T-bill auction avg disc rate | 0.03 | 0.07 | 1.16 |
| 182-day T-bill auction avg disc rate | 0.05 | 0.07 | 1.01 |
| Two-Year Treasury Constant Maturity | 0.11 | 0.11 | 0.71 |
| Five-Year Treasury Constant Maturity | 0.59 | 0.45 | 0.77 |
| Ten-Year Treasury Constant Maturity | 1.37 | 1.12 | 1.02 |
| One-Year CMT (Monthly) | 0.10 | 0.10 | 1.41 |
| One-Year MTA | 0.26 | 0.26 | 1.87 |
Ratings methodology
Since investors in riskier investments command a higher return as compensation, the yields on many bonds and money market instruments are priced at a spread over the corresponding risk-free Treasury rate. Yields on money markets and certificates of deposit are often priced relative to yields on Treasuries of a similar length. Adjustable rate mortgages can be indexed to the one-year Treasury. Fixed mortgage rates are closely linked to movements in long-term Treasury yields, as mortgages are often packaged together and sold as mortgage-backed bonds. Yields on short-term Treasuries can behave differently from yields on longer-term Treasuries.