The 5-Year U.S. Treasury yield represents the annualized return on a 5-year government bond. It sits in the "belly" of the yield curve, reflecting a blend of near-term rate expectations and longer-term economic outlook.

Why It Matters

The 5-year is the benchmark for many adjustable-rate mortgages (5/1 ARMs) and serves as a key reference rate for corporate borrowing. It reflects both Fed policy expectations and inflation outlook over the medium term.

TIPS Breakeven

The 5-year TIPS (Treasury Inflation-Protected Securities) breakeven rate—derived from the difference between nominal and inflation-adjusted 5-year yields—is a closely watched measure of market inflation expectations.

Market Impact

Moves in the 5-year yield affect mortgage rates, corporate bond yields, and medium-term borrowing costs throughout the economy.