10 Year Bond Rate
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The 10 year bond rate is considered the benchmark of long-term investments in US government bonds. The
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10 Year Bond Rate – What Is a Bond?
Bond is an investment vehicle denoting a loan to a government, corporation or municipality. Generally, bonds pay a fixed rate of interest and return the principal investment upon maturity. For example, with a 10-year bond, you receive interest income every six months based on the 10 year bond rate. At the end of 10 years, investors receive the principal amount. It is always better to invest in bonds that are FDIC approved.
10 Year Bond Rate – Governments Buy Bonds
The 10 year bond rate is the rate of interest that a 10 year bond offers. Many foreign governments buy US bonds as a hedge. Individual investors in the
10 Year Bond Rate – Why Bonds?[br]
Investors normally opt for US Treasury bonds with 10 year bond rate or 30 years bond rate when the income from other forms of investments, such as equities, futures, options and mutual funds, are extremely volatile. However, when the inflation and the budget deficit of the
As of October 2009, the 10 year bond rate is somewhere around 4%. It used to be around 15% during the 80s. The low rate is attributed to the 2008 global economic crisis. However, it is advisable to invest your money in bonds, rather than keep them in savings accounts that offer very low interest rates.