10-year Treasury Note

A 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. A 10-year Treasury Note is issued with a defined rate of interest, or coupon rate (for example 5% of the note's face value). Every year, holders of the 10-year Treasury Note receive the coupon rate from the Treasury. After ten years, the 10-year Treasury Note matures and the owner is paid the face value. The percentage of that total payment that exceeds the 10-year Treasury Note's market price, annualized, is called the yield. When the current market price for the 10-year Treasury note rises, the yield for the 10-year Treasury Note falls, and vise versa.