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Finance & Banking vocabulary · Treasury & Markets

Yield

Meaning in finance & banking, with examples

/jiːld/nounCommon term

In finance & banking, yield means: The income an investment earns, shown as a percentage of its price or value. For a bond, it is the return an investor gets by buying at the current price.

In Turkish: getiri, verim, faiz getirisi

How it is used

Used in treasury, bond markets and investment. Bond yields rise when prices fall, and fall when prices rise. Traders follow the benchmark bond yield and the yield curve, which compares yields across maturities. It is also a verb: the bond yields 8%.

Example sentences

  1. Government bond yields rose after the inflation data.

  2. The yield on our securities portfolio fell as older bonds matured.

Common collocations

  • bond yield
  • yield curve
  • benchmark yield
  • dividend yield
  • yields rise
  • bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
  • interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.
  • securitiesFinancial assets that can be bought and sold, such as shares, bonds and bills, which give the owner rights like part ownership or a claim to repayment.
  • spreadThe difference between two rates or prices, such as between a bank's lending and deposit rates, or between the buying and selling price of a currency.
  • credit ratingAn assessment, usually by a rating agency, of how likely a company, bank or country is to repay its debt, shown with letters such as AAA or BB.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Treasury & Markets

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