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Economics vocabulary · Central Banks and Interest Rates

Bond yield

Meaning in economics, with examples

nounCommon term

In economics, bond yield means: The return an investor gets from holding a bond, shown as a yearly percentage; when bond prices fall, yields rise.

In Turkish: tahvil faizi, tahvil getirisi

How it is used

Government bond yields, especially the 10-year yield, are watched as a measure of borrowing costs and market confidence. Yields rise, jump, fall or ease. The difference between two yields is called a spread.

Example sentences

  1. The ten-year bond yield rose to 4.5% after the inflation data.

  2. Lower bond yields reduce the government's borrowing costs.

Common collocations

  • 10-year bond yield
  • bond yields rose
  • benchmark bond yield
  • yield spread
  • government bondA debt security issued by a government to borrow money; the government promises to pay interest and to repay the full amount on a set date.
  • interest rateThe price of borrowing money, shown as a yearly percentage of the amount borrowed; for savers, it is the return they earn on deposits.
  • public debtThe total amount of money that a government owes to lenders at home and abroad, built up over years of borrowing.
  • defaultTo fail to pay interest or repay a loan or bond on time; the noun default describes this failure.
  • hawkishFavouring higher interest rates or tighter monetary policy because controlling inflation is seen as the top priority.

More terms: Central Banks and Interest Rates

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This page explains English vocabulary for learners. It is not financial advice.