10-year Treasury yield 4.56% on May 22

The U.S. 10-year Treasury yield ended May 22 at 4.56%, according to Advisor Perspectives, capping another week of rising long-term borrowing costs. The 2-year Treasury yield ended the session at 4.13%, the same report said. Yahoo Finance showed the 10-year at about 4.58% during May 22 trading and said the 2-year yield had moved above the federal funds rate. The Federal Reserve’s target range for the federal funds rate was 4.25% to 4.50% as of May 22, according to Federal Reserve and FRED data. ### Why are there two different 10-year numbers for the same day? May 22 data varied by source because outlets were describing different moments in the trading day or different calculation conventions. Advisor Perspectives said the 10-year note “finished” the day at 4.56%, while Yahoo Finance said the yield was about 4.58% “as of this writing” in a May 22 article. (advisorperspectives.com) The U.S. Treasury’s own daily rates page publishes official constant-maturity Treasury yields for each business day, including May 22, and is the standard government reference for historical comparisons. Treasury notes on that page that the series reflects par yield curve rates interpolated from the Treasury’s yield curve. (advisorperspectives.com) ### What does a 4.56% 10-year yield actually tell you? A 4.56% 10-year yield is the annualized return investors demanded on benchmark U.S. government debt over a 10-year horizon at that point in the market. Because the 10-year Treasury is a reference rate across finance, moves in that yield are watched in mortgages, corporate borrowing and broader asset pricing, though those links vary by product and timing. (treasury.gov) CNBC reported on May 18 that the 10-year Treasury yield had touched its highest level in a year during a broader global bond selloff. That report said the rise in yields was not limited to the United States, citing simultaneous moves in German and Japanese government bonds. ### Why was the 2-year yield getting so much attention? (advisorperspectives.com) Yahoo Finance highlighted the 2-year Treasury because it had moved above the federal funds rate, a relationship investors watch for clues about how markets are pricing near-term Fed policy. The article said the 2-year yield had “blown past” the federal funds rate on May 22. (cnbc.com) FRED’s federal funds target upper-limit series showed the top of the Fed’s range at 4.50% as of May 22, while the 2-year constant-maturity Treasury series was 4.08% on May 21, the latest FRED reading then available. Advisor Perspectives and other market snapshots put the 2-year at 4.13% on May 22. That means the market move being discussed was relative to the effective policy band and intraday or end-of-day market pricing, not a contradiction in the official series. (finance.yahoo.com) ### Where should you look next for confirmation? The U.S. Treasury updates its Daily Treasury Rates page for each business day, and FRED updates its constant-maturity Treasury series and federal funds target data on a lagged basis. Those pages are the cleanest way to check whether May 22’s move held into the next trading sessions and whether the 2-year remained near or above the Fed’s target band. (treasury.gov) (advisorperspectives.com)