Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity, Quoted on an Investment Basis
This dataset tracks market yield on u.s. treasury securities at 2-year constant maturity, quoted on an investment basis over time.
Latest Value
3.72
Year-over-Year Change
-4.12%
Date Range
6/1/1976 - 8/5/2025
Summary
The 2-Year Treasury Yield represents the market's expectation of short-term interest rates and economic conditions. It serves as a critical benchmark for fixed-income investments and provides insights into investor sentiment about near-term economic prospects.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This yield reflects the return investors receive for lending money to the U.S. government for a two-year period. Economists closely monitor this metric as a leading indicator of economic expectations, potential monetary policy shifts, and overall market confidence.
Methodology
The yield is calculated daily based on the most recently auctioned 2-year Treasury notes, representing the average market rate for these securities.
Historical Context
Central banks and financial institutions use this yield to inform monetary policy decisions, assess economic health, and gauge potential interest rate movements.
Key Facts
- Represents the government's borrowing cost for two-year periods
- Sensitive to Federal Reserve policy expectations
- Crucial for comparing short-term investment returns
FAQs
Q: What does the 2-Year Treasury Yield indicate?
A: It reflects market expectations for short-term interest rates and economic conditions. The yield provides insights into investor sentiment about near-term economic prospects.
Q: How often is this yield updated?
A: The 2-Year Treasury Yield is updated daily during active trading days. It reflects the most recent market conditions and auction results.
Q: Why do investors watch this yield?
A: Investors use this yield to assess potential investment returns, understand economic expectations, and make informed decisions about fixed-income securities.
Q: How does this yield relate to monetary policy?
A: The yield provides signals about potential Federal Reserve interest rate decisions and overall economic health. It's a key indicator for policymakers and financial analysts.
Q: What are the limitations of this data?
A: The yield represents a snapshot of current market conditions and can change rapidly based on economic news, global events, and investor sentiment.
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Citation
U.S. Federal Reserve, Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity, Quoted on an Investment Basis [DGS2], retrieved from FRED.
Last Checked: 8/1/2025