The 3 fields and concepts you'll meet in the response — defined in plain English, each with a real example value.
A graphical representation of yields across different Treasury maturities.
A normal yield curve slopes upward, with longer maturities yielding more than shorter ones. An inverted curve (short rates higher than long) has historically preceded recessions. A flat curve indicates uncertainty about future rates.
Example1M: 5.52%, 1Y: 4.89%, 10Y: 4.14%, 30Y: 4.31%
Short-term government securities with maturities of one year or less.
T-Bills are sold at a discount to face value. For example, a $1,000 T-Bill might sell for $975, with the $25 difference being the investor return. They are considered risk-free and highly liquid.
Example3month: 5.46% (annualized yield)
Treasury Inflation-Protected Securities - bonds that adjust principal based on inflation.
TIPS principal increases with CPI inflation and decreases with deflation. At maturity, you receive the adjusted principal or original principal, whichever is greater. The yield shown is the real yield (above inflation).
Example10year TIPS: 1.87% (real yield)
