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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →The five-year Treasury figure on CNBC is a market yield benchmark for a five-year maturity. It is not the interest rate that every five-year Treasury note pays. Each note carries a fixed coupon set at auction, while the benchmark moves with market prices. Knowing the difference tells you what the number can and cannot say about your money.
What the five-year figure measures
The U.S. Treasury publishes daily par yield curve rates, also called constant-maturity Treasury (CMT) rates. These are read from a curve at fixed maturity points, and five years is one of them. The curve is built from closing bid-side quotations for the most recently auctioned nominal Treasury securities in the over-the-counter market. The Federal Reserve Bank of New York collects those indicative quotations at or near 3:30 p.m. each trading day. They are not records of completed trades.
Because the five-year point is a standardized maturity, it can be an interpolated value even when no outstanding note has exactly five years left. In other words, the figure describes what a five-year maturity is worth to the market on a given day, not the terms of one specific bond.
CNBC’s app description refers to bond information and historical Treasury yield curves. That description does not spell out which instrument, timestamp or update schedule CNBC’s current quote uses. Read the label and time stamp on the page you are viewing before you rely on the number.
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Yield is not the coupon
Treasury notes come in two-, three-, five-, seven- and ten-year terms. Each note’s coupon rate is fixed at auction, and interest is paid every six months. TreasuryDirect states a $100 minimum purchase for notes, and says a note can be held to maturity or sold before then.
Yield to maturity is different. TreasuryDirect defines it as the annual rate of return on a security, and explains that a note’s price depends on how its yield compares with its coupon. The coupon is the fixed cash interest. Yield is the return a buyer earns at the price actually paid, which changes as market conditions change.
How yield and price move against each other
A note’s market price is set so that its yield matches what buyers currently demand. When the yield is above the coupon, the price falls below face value. When it is below the coupon, the price rises above face value. When they match, the note trades at par. The table below uses a hypothetical $1,000, five-year note with a 4% coupon. These are illustrative calculations, not current quotes.
| Relationship between market yield and coupon | Hypothetical market yield | Approximate price per $1,000 face value | Position versus par |
|---|---|---|---|
| Yield above coupon | 5% | About $956 | Below par |
| Yield equal to coupon | 4% | $1,000 | At par |
| Yield below coupon | 3% | About $1,046 | Above par |
The same coupon can therefore look attractive or unattractive depending on the price you pay. A higher price locks in a lower yield, and a lower price locks in a higher yield.
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What the figure may mean for your investments
If you are considering a newly issued Treasury
Higher prevailing yields can make new issues more appealing than they were when yields were lower. The coupon and auction yield are set at the auction itself, so the benchmark tells you the general market level, not the terms you will receive. If you buy in the secondary market, the price you pay matters as much as the coupon.
If you already own a note or bond
Rising market yields can lower the value of an existing note with a lower coupon, but only if you sell before maturity. If you hold to maturity, the contractual payments are what you receive, subject to the U.S. government meeting its obligations. The five-year benchmark alone does not calculate how much a particular holding would change in value. That depends on its coupon, its remaining term and its cash flows.
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If you use a bond fund
A bond fund does not mature the way a single note does. It keeps a changing portfolio of bonds, so its value responds to rates on an ongoing basis. Owning a fund is therefore not the same as owning one note to its maturity, and it is not a substitute for knowing when you will need the money.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Ways to get Treasury exposure
CNBC Select describes buying Treasuries directly, through TreasuryDirect or a brokerage, and gaining indirect exposure through bond funds. The table compares these routes on the points the sources address. Where a source does not state a term, the table says so.
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| Route | Can you hold one security to maturity? | What happens if you sell earlier | Fees and tax treatment |
|---|---|---|---|
| Individual Treasury note (TreasuryDirect) | Yes, by holding to maturity | Sold at the then-current market price | Not stated in the sources reviewed |
| Individual Treasury note (brokerage) | Yes, by holding to maturity | Sold at the then-current market price | Not stated in the sources reviewed; depends on the broker |
| Treasury bond fund | No single maturity date for the holder | Fund shares are valued on an ongoing basis | Not stated in the sources reviewed; check the fund’s own documents |
How to check the CNBC number before you act
- Confirm the label on the CNBC page says five-year Treasury yield and identifies the measure being shown.
- Note the timestamp. Treasury’s published rates reflect quotations taken at or near 3:30 p.m. Eastern on each trading day.
- Compare the same date against the U.S. Treasury’s daily par yield curve rates on the Treasury’s own website.
- Before buying, check the price and yield of the specific note or fund you are considering, through TreasuryDirect or your brokerage. Do not assume it matches the benchmark.
Limits of the benchmark
- It describes the market for a five-year maturity, not a guaranteed return on a new purchase.
- It is built from indicative quotations, not from one exact five-year security’s trades.
- It does not predict stock returns or signal what you should own.
- It does not account for your time horizon, cash needs, tax situation or whether you may need to sell early.
For personal allocation decisions, the benchmark is one input among several, and the terms of the specific security you buy are what determine your outcome.
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