Treasury Yields Are About 2 Points Above Normal. Here’s What That Means.

Treasury yields are roughly 2 percentage points above their post-2020 averages. 

The 2020s began with yields near zero, then spiked, and the average over that stretch, about six years, is still far below where yields are now.

Take a $100,000 investment. 

A 2-point gap is roughly $2,000 more per year in interest than at the average yield. 

On a 10-year bond, that’s about $20,000 more over the life of the bond, before any reinvestment. T

Yields at 4.8% to 5.4% across the curve give investors real income for taking Treasury risk, which is little.

There is always the possibility yields rise from here, which means prices fall. The longer the maturity, the bigger the swing.

A yield well above average is attractive, but it should match your timeline, taxes, and risk tolerance.

For investors who spent the early 2020s waiting for income, this is what they were waiting for.