Finance glossary

What is Bond yield?

The annual return an investor earns on a bond at its current market price, which moves in the opposite direction to the price.

When bond prices fall, yields rise, and the other way round. The 10-year government bond yield is watched as a guide to long-term interest rates. Rising yields usually push up borrowing costs for companies and can lead to higher loan rates.

← All finance terms A–Z

In the news