The 10-Year Treasury is the US government bond with a 10-year maturity and the primary benchmark for long-term interest rates in the US. It is considered the safest asset in the world, used as a benchmark for global risk pricing.
When the 10-Year Treasury rises, long-term interest rates increase, which tends to pressure stocks (especially growth stocks) and valuation multiples. When it falls, the opposite occurs.
The spread between the 10-Year Treasury and the 3-Month Treasury (yield curve) is a classic recession indicator when inverted.
Frequently asked questions
What is the 10-Year Treasury?
The 10-Year Treasury is the US government bond with a 10-year maturity. It is the primary benchmark for long-term interest rates in the US.
What does yield curve inversion mean?
Inversion occurs when short-term Treasuries (e.g. 3-month) yield more than long-term ones (10-year). Historically it is a recession indicator.