Treasury note.
In plain English
Treasury notes are U.S. government debt with maturities of 2, 3, 5, 7, or 10 years. They pay a fixed coupon every six months and return the face value at maturity. The 10-year Treasury note is the most-watched intermediate U.S. interest rate; it serves as the benchmark for mortgage rates, corporate bond pricing, and global investment yields. Like all Treasuries, T-notes are exempt from state and local income tax.
01Why it matters
The 10-year yield is the single most-quoted long-term U.S. interest rate. When the news says 'the 10-year is up,' that is a Treasury note. Mortgage rates, corporate bond yields, and many international interest rates track the 10-year either directly or by tradition.
02The math, step by step
A 10-year Treasury note auctioned in May 2024 at a 4.36% yield. A $100,000 purchase pays $4,360 per year in two $2,180 coupons. The buyer can sell anytime in the market or hold to maturity in 2034 for the full $100,000.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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