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.
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| This week | Month ago | Year ago | |
|---|---|---|---|
| One-Year Treasury Constant Maturity | 2.25 | 2.10 | 1.07 |
| 91-day T-bill auction avg disc rate | 1.83 | 1.76 | 0.82 |
| 182-day T-bill auction avg disc rate | 1.99 | 1.90 | 0.96 |
| Two-Year Treasury Constant Maturity | 2.48 | 2.26 | 1.29 |
| Five-Year Treasury Constant Maturity | 2.83 | 2.58 | 1.87 |
| Ten-Year Treasury Constant Maturity | 3.00 | 2.78 | 2.35 |
| One-Year CMT (Monthly) | 2.06 | 1.96 | 1.01 |
| One-Year MTA | 1.46 | 1.38 | 0.69 |
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.