The US Treasury 2-year yield is an annualized bond-yield measure, not a bond price. The two-year term is especially sensitive to near-term monetary-policy and inflation expectations. It does not guarantee future investment returns.
History and development
The US Treasury market developed alongside government financing. Notes and bonds have been regularly sold at auction since 1974, and the Treasury Direct book-entry system arrived in 1986, advancing the transition from paper securities to electronic records.
The 2-year yield provides a maturity-specific view of policy-rate expectations. Comparing short and long maturities reveals the yield curve. Auction coupon rates, secondary-market yields and bond prices are distinct measures; this chart follows the secondary-market yield rather than a bond-price series.
References: Government bonds: structure and history · US Treasury: issuance history
Comparing charts on this board
Compare the country’s two-, five-, ten- and thirty-year yields to see which maturity leads and whether the short–long gap widens. For the 2-year point, focus on policy-rate expectations. Read actual yield levels as well as percentage changes, distinguishing a narrowing two–ten-year spread from a parallel rise across maturities.
Add the corresponding maturity in the other country and USD/JPY to compare rate differentials with currency turning points. Treasury futures, TLT and BND show prices rather than yields, so inverse responses are the normal starting point. Equity indices help distinguish stocks rising alongside growth-related yield increases from stocks falling as discount rates rise.
Related charts: US 2Y Futures · Japan 2Y · US 10Y Yield · USD / JPY
Official references: Government bonds: structure and history · US Treasury: issuance history