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I have recently realized that the US treasury security has a big impact on the market.

So, which security should I follow?

Is the U.S. 10 Year Treasury Note rate the most important?

Also, which interest rate should I follow?

1 Answer 1

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2 year and 10 year are most important for the yield curve, roughly representing the short and long ends of the curve. The shape of the curve tells you something, as do the real and nominal rates of the 2 year and 10. (Real rates are rates adjusted for inflation).

The shortest end of the curve is the end that is most controllable by the Fed, so the 1 month T-bill is also important to see what the Fed is directly controlling.

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  • Thanks. Is there any other interest rate I should pay attention to? Like Fed interbank interest rate? Commented Mar 9, 2021 at 21:50
  • Sure, that is the one actually set by the Fed. Could ignore the 1-month bill and follow the Fed Funds Rate. Commented Mar 9, 2021 at 22:47

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