Treasury Yield can be defined as the percentage return on the investment that an investor has made and is directly on US Government debt obligations. That means that the Government of United States issues a number of investment tools such as bonds, notes and bill. The investors invest in these tools by lending money to the US Government in form of invest and the US Government has to pay return on this investment in the form of debt that is granted to the investors in percentage format. From another angle we can define treasury yield as an interest that the US Government has pay to the borrowers while borrowing money from them for different length of time. Treasury yield has an overall impact on the different interest rates floating in the market. That means the treasury yield influence the amount of interest paid by the government to the borrower and the amount that investor can earn due to investing in treasury yield. In addition to this treasury yield also decides the interest rate that individual has to pay while borrowing money from the government in order to purchase real estate, vehicles or other sorts of equipments.
Treasury yield also provide the overall health and the look of the economy. For example the higher the treasury yields in 10- 20- or 30- upcoming years the healthier economy will look and feel. Treasury yields are considered to be the low risk investments as they are backed by the US Government and are repaid with full faith. Due to low risk associated with treasury it also have low rate of return investment.
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