A bond yield is the return an investor earns for lending money to a government or a company. When bond prices fall, yields rise, and the other way around.
Why prices and yields move in opposite directions
A bond pays a fixed amount of interest. If new bonds start paying more, older ones become less attractive, so their price falls until their return matches the market. That return is the yield.
The 10-year Treasury
The yield on 10-year U.S. government debt is the benchmark for long-term borrowing. It reflects where investors expect short-term rates and inflation to go, plus extra compensation for tying up money for a decade.
Why it matters to you
Mortgage rates, car loans and corporate borrowing all key off Treasury yields. When the 10-year closed at 5% on September 15, 2026, for the first time since 2007, the 30-year mortgage rate moved above 7% within nine days.
Sources
This is information, not a recommendation to buy, sell or borrow. Read our investment disclaimer.
