What is the 10-year Treasury yield?

The 10-year Treasury yield is the yield or interest paid to investors who purchase 10-year Treasury notes. It rises and falls based on myriad factors, including inflation, monetary policy, and investor confidence. The 10-year Treasury yield helps investors track the cost of capital and financial market health.

Why is a 10-year Treasury bond a good investment?

The importance of the 10-year Treasury bond yield goes beyond just understanding the return on investment (ROI) for the security. The 10-year is used as a proxy for many other important financial matters, such as mortgage rates. This bond also tends to signal investor confidence.

Is a 10-year Treasury note a safe investment?

It moves to the inverse of the price of the 10-year Treasury note and is considered one of the safest—if lowest returning—investments that can be made. Although the investment is guaranteed by the U.S. government, investors could still lose money if inflation outpaces the 10-year yield.

What is the average 10-year yield for 2023?

As of early July, the 10-year Treasury yield was around 4%, which is slightly lower than some of the 10-year yields of mid-October 2022 that peaked at about 4.25%. So far, the average yield for 2023 is roughly 3.6%.