What is US Treasuries?
US Treasuries are debt securities issued by the US Treasury Department. Bills (under 1 year, sold at discount), Notes (2, 3, 5, 7, 10 years), Bonds (20, 30 years), and TIPS (inflation-protected). The 10-year Treasury yield is the global benchmark for "risk-free" returns and underpins corporate bond pricing, mortgage rates, and equity valuations worldwide.
Why it matters for investors
Treasury yields drive virtually every other asset class. Higher yields hurt long-duration assets (growth stocks, bonds, REITs, gold). The yield curve (2y vs. 10y) is one of the most reliable recession indicators — inversion has preceded every US recession in the last 60 years.