Identification
The 10 year bond refers to the U.S. Treasury note that matures in 10 years. The 10 year note is the longest term bond regularly issued by the federal government.
Time Frame
The Federal Reserve has a lot of control over short-term interest rates, however, the long-term rates as defined by the 10 year bond yield are driven by market expectations. If the market believes inflation will increase, the yield will rise. Falling yield can be an indication of a slowing economy.
Effects
The 10 year Treasury note rate has a strong effect on other rates, particularly long-term mortgages. Tracking the changes in the 10 year bond rate will indicate the direction of mortgage rates.
History
Since 1970, the yield on the 10 year Treasury has ranged from a low of just 2.2% in late 2008 to a high of 15.6% in October 1981.
Current
In February 2010, the 10 year Treasury yield was at 3.7%. The U.S. Treasury website at provides a daily list of the yield of different maturities.
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