A Treasury yield is the annualized return an investor earns by holding a U.S. Treasury security to maturity. Treasury securities are considered the safest investments in the world because they are backed by the U.S. government. The 10-year Treasury yield is the most watched benchmark in global finance, influencing mortgage rates, corporate borrowing costs, stock valuations, and currency exchange rates.
The U.S. Treasury issues securities at various maturities: T-bills (4 weeks to 1 year), T-notes (2 to 10 years), and T-bonds (20 and 30 years). They are sold at auction, and their yields are determined by supply, demand, and expectations for future inflation and Fed policy. When bond prices go up, yields go down (and vice versa), because the fixed coupon payment becomes a smaller or larger percentage of the purchase price.
The "yield curve" plots yields across all maturities. Normally, longer-term bonds yield more than short-term ones (compensation for tying up money longer). When the curve inverts (short-term yields exceed long-term), it has historically been a reliable recession predictor. The spread between the 2-year and 10-year yields is one of the most closely watched indicators in finance.
Treasury yields ripple through every corner of the economy. Mortgage rates move roughly in tandem with the 10-year yield. Corporate bonds are priced as a spread above Treasuries. When yields rise, the discount rate applied to future cash flows increases, which mathematically reduces stock valuations (especially growth stocks). For crypto traders, rising real yields (yields minus inflation) compete with risk assets, often creating headwinds for Bitcoin and altcoins.
The Economic Data panel on the TerminalFeed dashboard displays yield data alongside other FRED-sourced indicators. The Why Data Matters for Traders article explains how traders use Treasury yields in conjunction with CPI and Fed decisions to anticipate market moves.