Treasury yield is the effective annual interest rate that the U.S. government pays on one of its debt obligations, expressed as a percentage. Put another way, Treasury yield is the annual return investors can expect from holding a U.S. government security with a given maturity.
Treasury yields don't just affect how much the government pays to borrow and how much investors earn by buying government bonds. They also influence the interest rates consumers and businesses pay on loans to buy real estate, vehicles, and equipment.
Treasury yields also show how investors assess the economy's prospects. The higher the yields on long-term U.S. Treasuries, the more confidence investors have in the economic outlook. But high long-term yields can also be a signal of rising inflation expectations.
Treasury yields are inversely related to Treasury prices.
Treasury yields can go up, sending bond prices lower, if the Federal Reserve increases its target for the federal funds rate (in other words, if it tightens monetary policy), or even if investors merely come to expect the fed funds rate to go up.
An inverted yield curve on which the yield on the 10-year Treasury note has declined below that on the 2-year Treasury note (to cite just one popular benchmark) has usually preceded recessions.
A rising yield indicates falling demand for Treasury bonds, which means investors prefer higher-risk, higher-reward investments. STONKS GO UP, FORCING THE FED TO REMAIN HAWKISH! A falling yield suggests the opposite.