Amid a resilient economy and labor market coupled with stubborn inflation, the yield or interest rate on a 10-year Treasury note has hovered around 4–5 percent since 2003. And in mid-January, the yield climbed to 4.79 percent, its highest since Nov. 1, 2023.
So you may be considering investing in 10-year Treasury notes. But first, it’s important to understand how these debt securities work.
What Is a 10-Year Treasury Note?
A 10-year Treasury note is essentially a loan you (the investor) provide to the U.S. government. It matures 10 years after the date of issuance. And it pays interest at a fixed rate every six months before the principal is paid off at maturity.
Javier Simon
Author
Javier Simon is a freelance personal finance writer for The Epoch Times. He specializes in retirement planning, investing, taxes, fintech, financial products and more. His work has been featured by major publications including Fox Business, The Motley Fool, NerdWallet, and Money Magazine.
