Treasury Yields are the effective annual interest rate that the U.S. government pays on one of its debt obligations, expressed as a percentage 1. In other words, it 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. The Treasury holds Auctions for three types of securities. They are described as Bills, Notes, and Bonds. Auctions are organized by the type of Security and held through Treasury Direct. Treasuries can also be purchased on Secondary Markets through a Broker like eTrade.
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