# What Are Treasury Yields? Definition and Example

> Treasury yields are the interest rates the US government pays to borrow. Here is how they are set, why bond prices fall when yields rise, and what 2022 showed about it.

Source: https://www.exent.ai/learn/treasury-yields · Reviewed by David, Senior Analyst, Exent · Published Nov 11, 2026 · Updated Nov 11, 2026

## Key takeaways

- Treasury yields are the annual return investors earn for lending to the US government, from a few weeks (bills) to 30 years (bonds). They move opposite to bond prices.
- The longer the maturity, the more a change in yields moves the price: in 2022, long Treasuries (TLT) fell 31.2% while 1–3 month T-bills (BIL) gained 1.4%, in Exent’s data.
- Yields set the baseline return that stocks and every other asset compete with.

## What are Treasury yields?

The US Treasury borrows by selling bills (up to one year), notes (2 to 10 years) and bonds (20 and 30 years). The yield is the annual return a buyer locks in at today’s price if the security is held to maturity. The Treasury publishes official [daily yield curve rates](https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve). Plotted by maturity, they form the [yield curve](https://www.exent.ai/learn/yield-curve).

## Why do bond prices fall when yields rise?

A bond’s coupon is fixed. When new bonds offer more, old ones must fall in price until their yield matches. Illustrative: a 10-year note paying 3% loses roughly 8% of its price if market yields on similar notes jump to 4%. Short-term yields track the [federal funds rate](https://www.exent.ai/learn/fed-funds-rate) closely; long-term yields also reflect expected inflation, growth and the extra return investors demand for tying money up longer.

## Example: Treasury funds in the 2022 rate rise

| Fund | Maturity | 2022 return | 10-year return a year |
| --- | --- | --- | --- |
| T-bills (BIL) | 1–3 months | +1.4% | +2.1% |
| Short Treasuries (SHY) | 1–3 years | −3.9% | +1.5% |
| Intermediate Treasuries (IEF) | 7–10 years | −15.2% | −0.1% |
| Long Treasuries (TLT) | 20+ years | −31.2% | −3.1% |

Exent’s data, total returns, 10 years to Sep 30, 2026. Longer duration meant a much bigger price hit when yields rose. See the [TLT data page](https://www.exent.ai/etfs/tlt).

## Why it matters for a self‑directed investor

Yields affect your portfolio three ways: the return on cash and bonds, the discount rate applied to company earnings (rising yields tend to weigh most on high-valuation growth stocks), and borrowing costs across the economy. The guide how to hedge against rising rates and the entry on [real yields](https://www.exent.ai/learn/real-yields) go further.

## Common mistakes

- Confusing a bond fund’s yield with its return. A rising-yield year can wipe out several years of income.
- Assuming Treasuries always cushion stocks. In 2022 both fell together.
- Ignoring maturity. “Treasuries” ranges from near-cash bills to very rate-sensitive 30-year bonds.

## Frequently asked questions

### Why do Treasury yields matter for stocks?

They set the risk-free return that stocks compete with and the discount rate for future earnings. Rising yields tend to pressure valuations, especially for growth stocks.

### What is the difference between Treasury bills, notes and bonds?

Maturity. Bills mature within a year, notes in 2 to 10 years, and bonds in 20 or 30 years.

### Why did Treasury funds lose money in 2022?

Yields rose quickly as inflation surged, so existing bonds fell in price. Long Treasuries (TLT) returned −31.2% that year.

### Where can I see today’s Treasury yields?

The US Treasury publishes official daily yield curve rates on its website, and most financial data sites show them as well.

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Educational content, not investment advice. Past performance does not guarantee future results.