The yield of ten-year treasury bonds refers to the annualized yield of treasury bonds with an average investment period of 10 years, which fluctuates with the market and is uncertain. So what is the function of this index value? This index value has many uses, for example, it can be used as a zero-risk forecast rate of return, and not only the bond market, but also the stock market will be affected by this rate of return. The yield of ten-year national debt can also reflect the economic development of the country. Generally speaking, the higher the hail rate of this income, the higher the economic growth rate of this country, on the contrary, it reflects the low economic growth rate of this country.

For example, the developed countries in Europe, because they are already relatively developed countries, have very low economic growth rates without new breakthroughs in economic development, and the ten-year bond yields of such countries are all negative. Among the developed countries, the United States has the best economic development, so the yield of ten-year US Treasury bonds is also the largest among these countries.

Different countries have different ten-year bond yields.

The yield of ten-year treasury bonds in China is 3. 18%, that in the United States is 1. 167%, that in France is -0.477%, and that in Japan is 0.03%. From this rate of return, it can probably reflect the economic growth rate of all countries in the world.

The Influence of Ten-year Treasury Bond Yield on Bond Market

If the yield of treasury bonds rises after ten years, the bond market will fall, and on the contrary, the bond market will grow. In the long run, the yield of national debt is spiraling down, because when the social economy develops to a certain extent, the quick judgment rate will drop.

Impact on financial institutions

The yield of ten-year treasury bonds has a great influence on banks. Usually, the higher the rate of return, the more financial institutions make money, the lower the rate of return, and the less financial institutions make money. For example, financial institutions in many European countries do not make much money or even lose money. Because the yield of government bonds will spiral down for a long time, financial institutions are only an area where they can invest in stages for a long time. You can't pick stocks with low valuation in this field, but low valuation may be more risky.