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What does the 10-Year Treasury’s price actually tell investors? This recap explains how a Treasury’s market price translates into yield and why the two move in opposite directions.

For informational and educational purposes only. Not financial advice.

#TreasuryYield #BondMarket #FixedIncome #MarketEducation

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Transcript
00:00Ten-Year Treasury, How Price Becomes Yield
00:05First, the essential mechanism is the inverse relationship between a treasury bond's price and its yield.
00:12A bond promises defined future payments.
00:16When buyers pay more for those same payments, the return relative to the purchase price becomes smaller.
00:23When the bond's price falls, that implied return becomes larger.
00:27That is why reports can say yields rose even though treasury bond prices declined.
00:33Full recap, tap the related video.
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Which part of the price-and-yield relationship do you find most confusing—and what would you like explained next?

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