As of July 18, 2025, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of ** percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United Kingdom had one the highest yield on 10-year government bonds at this time with **** percent, while Switzerland had the lowest at **** percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.

As of July 22, 2025, the yield for a ten-year U.S. government bond was 4.38 percent, while the yield for a two-year bond was 3.88 percent. This represents an inverted yield curve, whereby bonds of longer maturities provide a lower yield, reflecting investors' expectations for a decline in long-term interest rates. Hence, making long-term debt holders open to more risk under the uncertainty around the condition of financial markets in the future. That markets are uncertain can be seen by considering both the short-term fluctuations, and the long-term downward trend, of the yields of U.S. government bonds from 2006 to 2021, before the treasury yield curve increased again significantly in the following years. What are government bonds? Government bonds, otherwise called ‘sovereign’ or ‘treasury’ bonds, are financial instruments used by governments to raise money for government spending. Investors give the government a certain amount of money (the ‘face value’), to be repaid at a specified time in the future (the ‘maturity date’). In addition, the government makes regular periodic interest payments (called ‘coupon payments’). Once initially issued, government bonds are tradable on financial markets, meaning their value can fluctuate over time (even though the underlying face value and coupon payments remain the same). Investors are attracted to government bonds as, provided the country in question has a stable economy and political system, they are a very safe investment. Accordingly, in periods of economic turmoil, investors may be willing to accept a negative overall return in order to have a safe haven for their money. For example, once the market value is compared to the total received from remaining interest payments and the face value, investors have been willing to accept a negative return on two-year German government bonds between 2014 and 2021. Conversely, if the underlying economy and political structures are weak, investors demand a higher return to compensate for the higher risk they take on. Consequently, the return on bonds in emerging markets like Brazil are consistently higher than that of the United States (and other developed economies). Inverted yield curves When investors are worried about the financial future, it can lead to what is called an ‘inverted yield curve’. An inverted yield curve is where investors pay more for short term bonds than long term, indicating they do not have confidence in long-term financial conditions. Historically, the yield curve has historically inverted before each of the last five U.S. recessions. The last U.S. yield curve inversion occurred at several brief points in 2019 – a trend which continued until the Federal Reserve cut interest rates several times over that year. However, the ultimate trigger for the next recession was the unpredicted, exogenous shock of the global coronavirus (COVID-19) pandemic, showing how such informal indicators may be grounded just as much in coincidence as causation.

The yield on US 30 Year Bond Yield rose to 4.76% on December 2, 2025, marking a 0.02 percentage points increase from the previous session. Over the past month, the yield has edged up by 0.06 points and is 0.35 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. United States 30 Year Bond Yield - values, historical data, forecasts and news - updated on December of 2025.

Graph and download economic data for Interest Rates: Long-Term Government Bond Yields: 10-Year: Main (Including Benchmark) for United States (IRLTLT01USM156N) from Apr 1953 to Oct 2025 about long-term, 10-year, bonds, yield, government, interest rate, interest, rate, and USA.

The yield on US 10 Year Note Bond Yield rose to 4.12% on December 2, 2025, marking a 0.02 percentage points increase from the previous session. Over the past month, the yield has remained flat, and it is 0.11 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. US 10 Year Treasury Bond Note Yield - values, historical data, forecasts and news - updated on December of 2025.

Track real-time 10 Year Treasury Rate yields and explore historical trends from year start to today. View interactive yield curve data with YCharts.

At the end of 2024, the yield on the 10-year U.S. Treasury bond was **** percent. Despite the increase in recent years, the highest yields could be observed in the early 1990s. What affects bond prices? The factors that play a big role in valuation and interest in government bonds are interest rate and inflation. If inflation is expected to be high, investors will demand a higher return on bonds. Country credit ratings indicate how stable the economy is and thus also influence the government bond prices. Risk and bonds Finally, when investors are worried about the bond issuer’s ability to pay at the end of the term, they demand a higher interest rate. For the U.S. Treasury, the vast majority of investors consider the investment to be perfectly safe. Ten-year government bonds from other countries show that countries seen as more risky have a higher bond return. On the other hand, countries in which investors do not expect economic growth have a lower yield.

The yield on Japan 10Y Bond Yield eased to 1.86% on December 2, 2025, marking a 0.02 percentage points decrease from the previous session. Over the past month, the yield has edged up by 0.20 points and is 0.78 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Japan 10 Year Government Bond Yield - values, historical data, forecasts and news - updated on December of 2025.

The yield on India 10Y Bond Yield eased to 6.52% on December 2, 2025, marking a 0.06 percentage points decrease from the previous session. Over the past month, the yield has fallen by 0.03 points and is 0.24 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. India 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on December of 2025.

Graph and download economic data for Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity, Quoted on an Investment Basis (DGS30) from 1977-02-15 to 2025-11-28 about 30-year, maturity, Treasury, interest rate, interest, rate, and USA.

Graph and download economic data for 10-Year Real Interest Rate (REAINTRATREARAT10Y) from Jan 1982 to Oct 2025 about 10-year, interest rate, interest, real, rate, and USA.

Track real-time 20 Year Treasury Rate yields and explore historical trends from year start to today. View interactive yield curve data with YCharts.

In June 2025, the yield on a 10-year U.S. Treasury note was **** percent, forecasted to decrease to reach **** percent by February 2026. Treasury securities are debt instruments used by the government to finance the national debt. Who owns treasury notes? Because the U.S. treasury notes are generally assumed to be a risk-free investment, they are often used by large financial institutions as collateral. Because of this, billions of dollars in treasury securities are traded daily. Other countries also hold U.S. treasury securities, as do U.S. households. Investors and institutions accept the relatively low interest rate because the U.S. Treasury guarantees the investment. Looking into the future Because these notes are so commonly traded, their interest rate also serves as a signal about the market’s expectations of future growth. When markets expect the economy to grow, forecasts for treasury notes will reflect that in a higher interest rate. In fact, one harbinger of recession is an inverted yield curve, when the return on 3-month treasury bills is higher than the ten-year rate. While this does not always lead to a recession, it certainly signals pessimism from financial markets.

Graph and download economic data for Market Yield on U.S. Treasury Securities at 20-Year Constant Maturity, Quoted on an Investment Basis (DGS20) from 1962-01-02 to 2025-11-28 about 20-year, maturity, Treasury, interest rate, interest, rate, and USA.

After to as low as low as **** percent in July 2020, in the wake of the coronavirus outbreak, the yield on 10-year U.S treasury bonds increased considerably. As of June 2025, it reached **** percent.

In 2024, the average yearly yield of UK 10-year government bonds was **** percent. The UK 10-year gilt has shown a significant downward trend from 1990 to 2024. Starting at nearly ** percent in 1990, yields steadily declined, with slight fluctuations, reaching a low of **** percent in 2020. After 2020, yields began to rise again, reflecting recent increases in interest rates and inflation expectations. This long-term decline indicates decreasing inflation and interest rates in Australia over the past decades, with recent economic conditions prompting a reversal in bond yields.

The yield on France 10Y Bond Yield rose to 3.49% on December 1, 2025, marking a 0.07 percentage points increase from the previous session. Over the past month, the yield has edged up by 0.04 points and is 0.57 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. France 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on December of 2025.

Putable Bonds Market Outlook

According to our latest research, the global putable bonds market size reached USD 1.42 trillion in 2024, reflecting robust investor interest amid rising market volatility. The market is expected to grow at a CAGR of 6.1% from 2025 to 2033, projecting a value of USD 2.42 trillion by 2033. The primary growth factor for the putable bonds market is the increasing demand for flexible fixed-income securities that allow investors to mitigate interest rate and credit risk, particularly in uncertain economic environments.

One of the main growth drivers for the putable bonds market is the heightened sensitivity of investors to interest rate fluctuations and credit risk. In a climate where central banks frequently adjust policy rates, investors are seeking instruments that offer protection against potential declines in bond prices. Putable bonds, which grant holders the right to sell the bond back to the issuer before maturity, provide a unique safeguard. This flexibility is especially attractive to institutional investors managing large and diversified portfolios, as it enables them to optimize returns while minimizing downside risk. As a result, the adoption of putable bonds has accelerated, particularly among pension funds, insurance companies, and asset managers seeking to enhance portfolio resilience.

Another significant growth factor is the diversification of issuers entering the putable bonds market. While traditionally dominated by corporate issuers, there has been a notable increase in participation from government and municipal entities. This expansion is driven by the need for issuers to attract a broader investor base and offer more appealing terms amid competitive capital markets. The ability of putable bonds to offer lower coupon rates in exchange for the embedded put option is advantageous for issuers, allowing them to manage borrowing costs while catering to investor demand for risk-adjusted returns. This trend has not only expanded the supply side of the market but also contributed to the overall depth and liquidity of putable bond offerings worldwide.

Technological advancements in distribution channels have also played a crucial role in the growth of the putable bonds market. The proliferation of online trading platforms and digital brokers has democratized access to putable bonds, making them available to a wider range of investors, including retail participants. Enhanced transparency, streamlined transaction processes, and improved price discovery have collectively increased market participation. Furthermore, regulatory reforms in several regions have promoted greater disclosure and investor protection, thereby fostering confidence in putable bond investments. These technological and regulatory enhancements are expected to sustain the upward trajectory of the market in the coming years.

From a regional perspective, North America continues to dominate the putable bonds market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The strong presence of institutional investors, advanced financial infrastructure, and a mature regulatory environment contribute to North America's leadership. However, Asia Pacific is emerging as the fastest-growing region, driven by rapid economic development, increasing financial literacy, and ongoing capital market reforms. Latin America and the Middle East & Africa, though smaller in comparison, are witnessing steady growth due to rising demand for alternative investment instruments and evolving investor preferences. The global dispersion of issuers and investors is expected to further enhance the market's resilience and growth potential.

Type Analysis

The putable bonds market is segmented by type into investment grade and high yield bonds, each catering to distinct investor profiles and risk appetites. Investment grade putable bonds are favored by conservative investors who prioritize capital preservation and stable income streams. These bonds are issued by entities with strong c

This paper revisits the notion of a regulatory premium on certain assets. Central banks impose specific requirements on the types of bonds eligible for holding as collateral for monetary policy operations or lending facilities. In line with the predictions of the preferred-habitat view, meeting the policy requirements can result in certain bonds holding a premium compared to similar bonds that fail to meet the eligibility criteria.The Central Bank of Türkiye introduced a new monetary policy framework requiring Turkish banks to maintain long-term fixed rate domestic currency denominated sovereign bonds in blocked accounts against specific conditions. In this paper, we analyze how the so-called bond maintenance requirement affects the pricing in the bond market. Our findings indicate that the policy resulted in a significant decline in yields for eligible bonds, and it has varying effects along the sovereign bond yield curve. We document that if there had been no policy introduction, the long end of the sovereign bond yield curve would have been much steeper. Then, we observe that the eligibility discount has a temporary nature, and the yield for an eligible bond increases immediately when it switches to a non-eligible status. Next, we show that there is a non-linear relationship between eligibility discount and time-to-maturity for an eligible bond. Initially, the discount increases as the time-to-maturity lengthens, reaching a peak level. Beyond this point, it starts to decline for bonds in the longest time-to-maturity category. Finally, we provide preliminary findings that the policy has significant spillovers in financial markets: causing an increase in interest rate hedging costs, a rise in deposit rates and segmentation in bond pricing.

View market daily updates and historical trends for 3 Month Treasury Bill Rate. from United States. Source: Federal Reserve. Track economic data with YCha…