The price of US 10 Treasury bonds refers to the price at which we buy and sell treasury bonds, while the yield of US 10 Treasury bonds refers to the actual income we can get every year when we buy US 10 Treasury bonds. For example, suppose that we can now buy US 10-year bonds at 95 yuan's price, while the coupon price of US 10-year bonds is 100 yuan, and coupon rate is fixed. Suppose one year means that we can get interest yuan every year when we buy them with 95 yuan, and the US Treasury needs to return us 100 yuan after ten years.

The average annual income is:

Yuan;

The yield of ten-year US Treasury bonds is:

(yuan;

In this way, we can understand it well. In fact, this yield mainly depends on the fluctuation of the transaction price of 10-year treasury bonds. That is to say, in the above example, whether 95 yuan bought government bonds or 90 yuan bought government bonds, if the transaction price of government bonds falls, it means that the yield of government bonds will rise.

How did the spot transaction price of US 10-year Treasury bonds come from?

It is determined by the supply and demand situation in the market and the strength of buyers and sellers. The U.S. Treasury Department is the source of attacks on the U.S. 10-year Treasury bonds. In recent years, the United States will issue treasury bonds when it is short of money, and it will still issue treasury bonds when it encounters a crisis.

How does the change in the yield of US 10-year Treasury bonds affect A shares?

Ten-year US Treasury bonds are internationally recognized as risk-free investments. After all, the United States is very powerful now. As long as the United States does not go bankrupt, the national debt can be cashed and the income can be obtained. When the yield of US debt rises, some large funds will withdraw from risky assets and hold US debt to earn this risk-free income, so it is bad for risky assets such as the stock market.