Treasury Yield
interest benchmark
Treasury Yield is the return paid to holders of U.S. government debt securities such as Treasury bills (T-bills), notes, and bonds. It represents the annualized interest rate earned from these instruments and is widely regarded as the global benchmark for risk-free yield. Treasury yields are foundational to traditional financial markets and increasingly relevant within tokenized and decentralized ecosystems.
Use Case: A stablecoin like $RLUSD uses short-term Treasury yields as the source of backing and passive income, combining sovereign-grade safety with smart contract utility.
Key Concepts:
- Duration Spectrum ÔÇö T-bills (1 month to 1 year), Notes (2ÔÇô10 years), Bonds (10ÔÇô30 years).
- Macro Signal ÔÇö Rising yields may signal inflation or tightening policy; falling yields suggest risk-off sentiment.
- Yield Curve ÔÇö The slope between short- and long-term yields provides insight into economic expectations.
- On-Chain Yield ÔÇö Tokenized Treasuries allow protocols to tap into sovereign yield through smart contracts.
Summary: Treasury yield is a core benchmark in global finance, shaping credit markets, loan rates, and investor sentiment. Its integration into blockchain ecosystems through tokenized Treasuries and stablecoins like $RLUSD creates a trusted on-chain yield source. As Web3 matures, Treasury yield represents the convergence of monetary policy with decentralized financial infrastructure.
| Treasury Type | Duration | Typical Yield | Risk Level | Crypto Use Case |
|---|---|---|---|---|
| T-Bill | 1ÔÇô12 months | Low (2ÔÇô6%) | Minimal | Stablecoin backing (e.g., RLUSD) |
| Note | 2ÔÇô10 years | Moderate | Low | Yield protocols or RWA staking |
| Bond | 10ÔÇô30 years | Higher (but longer duration risk) | Low-Medium | Long-term tokenized yield vaults |