Treasury rates

Treasury Rates
1-Year 4.683%
2-Year 4.218%
3-Year 3.958%
5-Year 3.651%
7-Year 3.597%
10-Year 3.508%
30-Year 3.536%
Update: 2022-12-13

Treasury rates

Treasury rates

Treasury rates definition

Treasury rates are the interest rates the US government pays to borrow money for varying periods of time. Treasury rates are inversely related to Treasury prices. Treasury securities with different maturities have different rates. Treasury rates reflect the market's assessment of the economy's prospects. Higher rates on long-term treasuries indicate a more optimistic outlook and higher inflation expectations and vice-versa.

Treasury rates and the Yield Curve

The US yield curve is a line that plots treasury rates for differing maturity dates. The benchmark US yield curve monitored closely is the spread between the 10-year treasury rate and the 2-year treasury rate. The 10-year to 2-year yield curve predicts economic conditions 4-5 years out.

The 2-year traasury rate of the yield curve is driven by market expectations of the Federal Reserve's actions while the 10-year treasury rates is driven by the market's expectations of future economic conditions and the inflation outlook.

The US yield curve is one of the most important leading indicators used to predict the US economy and markets. The full US yield curve (the spread between the US 10-year treasury rate and the Fed funds target rate) is often leading or lagging other leading indicators of the economy and markets.