| Five-Year Treasury Constant Maturity |
| By Bankrate.com |
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Five-Year Treasury Constant Maturity
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2.41 |
2.90 |
3.77 |
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What it means:
An index published by the Federal Reserve Board based on the average
yield of a range of Treasury securities, all adjusted to the equivalent
of a five-year maturity. Yields on Treasury securities at constant
maturity are determined by the U.S. Treasury from the daily yield
curve. That is based on the closing market-bid yields on actively
traded Treasury securities in the over-the-counter market.
How it's used:
This figure is used as a reference point to establish the price of
other securities such as corporate bonds. Treasury securities are
considered risk-free since they are backed by the U.S. government.
This figure, and an added margin based upon the risk involved, is
used in pricing various debt securities. It is also used in establishing
certificate of deposit (CD) yields.
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