Fitted Yield on a 3 Year Zero Coupon Bond

This dataset tracks fitted yield on a 3 year zero coupon bond over time.

Latest Value

3.70

Year-over-Year Change

-4.38%

Date Range

1/2/1990 - 8/1/2025

Summary

The Fitted Yield on a 3 Year Zero Coupon Bond is a key indicator of medium-term interest rate expectations. It provides insights into the yield curve and informs economic analysis and policy decisions.

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 series represents the yield on a theoretical 3-year zero coupon bond, as fitted by the U.S. Treasury yield curve. It is a widely-used benchmark for assessing medium-term interest rate dynamics and inflation expectations.

Methodology

The Federal Reserve calculates this yield based on a statistical model that fits a smooth yield curve to Treasury security prices.

Historical Context

Economists and policymakers closely monitor this trend to gauge monetary policy and economic conditions.

Key Facts

  • The 3-year zero coupon yield averages around 2.5% historically.
  • This metric reflects medium-term inflation and growth outlooks.
  • The 3-year yield is a key input for corporate borrowing and investment decisions.

FAQs

Q: What does this economic trend measure?

A: The Fitted Yield on a 3 Year Zero Coupon Bond measures the theoretical yield on a 3-year U.S. Treasury security with no coupon payments.

Q: Why is this trend relevant for users or analysts?

A: This yield is a crucial indicator of medium-term interest rate expectations and a benchmark for corporate and consumer borrowing.

Q: How is this data collected or calculated?

A: The Federal Reserve calculates this yield by fitting a smooth yield curve to observed Treasury security prices.

Q: How is this trend used in economic policy?

A: Policymakers and analysts monitor the 3-year yield to assess the impact of monetary policy and gauge economic conditions.

Q: Are there update delays or limitations?

A: This data is published daily with no significant delays, though it may be subject to minor revisions over time.

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Citation

U.S. Federal Reserve, Fitted Yield on a 3 Year Zero Coupon Bond (THREEFY3), retrieved from FRED.