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 | 0.24 | 0.15 | 0.12 |
| 91-day T-bill auction avg disc rate | 0.05 | 0.05 | 0.09 |
| 182-day T-bill auction avg disc rate | 0.09 | 0.07 | 0.09 |
| Two-Year Treasury Constant Maturity | 0.52 | 0.46 | 0.17 |
| Five-Year Treasury Constant Maturity | 1.14 | 1.15 | 0.42 |
| Ten-Year Treasury Constant Maturity | 1.43 | 1.56 | 0.92 |
| One-Year CMT (Monthly) | 0.11 | 0.11 | 0.13 |
| One-Year MTA | 0.08 | 0.08 | 0.62 |
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.