What is Bond yield?

A bond's yield is the annual return an investor gets from it, expressed as a percentage of its price.

Bond prices and yields move in opposite directions: when a bond's price falls, its yield rises, because the fixed interest payments are now a bigger share of a smaller price.

Why it matters to you

Rising yields usually mean higher borrowing costs for mortgages and businesses, and can weigh on stock prices.

Latest data

30-year mortgage rate · 10-year Treasury yield

FAQ

What is Bond yield?

A bond's yield is the annual return an investor gets from it, expressed as a percentage of its price.

Why do bond prices fall when yields rise?

New bonds pay the higher rate, so older bonds paying less must drop in price to compete.

Related terms

Treasury bonds · Yield curve · Interest rates

All plain-English definitions → · Educational only, not investment advice.

Markets right now

SPY 778.10 ▼0.1% · QQQ 746.04 ▼0.7% · VIX 15.21 ▲2.5% · US10Y 5.24% ▼0.1% · DXY 102.37 ▼0.2% · GOLD 4,217.50 ▲0.6% · BRENT 105.53 ▼1.1% · WTI 92.56 ▼1.3% · BTC 83,507.72 ▲2.1% (last known, as of 2:17 AM ET; may be delayed)