Benchmark · monthly · %

Treasury debt cost vs 10Y yield

How does the Treasury's average borrowing cost compare to the 10-year yield?

Treasury debt cost vs the 10-year yield compares the average interest rate the U.S. government pays on its stock of marketable debt to the benchmark 10-year Treasury rate. The average cost reflects debt issued over years at very different rates, so it lags the current market yield. The spread shows whether the Treasury's existing debt stock is cheaper or more expensive than new 10-year money.

Readingsmonthly

Marketable debt cost: 3.4%
10-year Treasury yield: 4.8%
Spread: −1.3 pp
13-week change: −0.3 pp; from −1.0 pp
Percentile of spread: 6th; of 163 readings · since 2013-01-31

Marketable debt cost

10-year Treasury yield

Treasury debt cost vs 10Y yield: summary statistics (Max range)
Series	First	Latest	Min	Max
Marketable debt cost	2.04	3.44	1.42	3.44
10-year Treasury yield	2.02	4.75	0.55	4.88

Source: U.S. Treasury
Series: marketable-cost-10y dgs10
Frequency: monthly
Data through: July 2026
Refreshed: 11 Aug 2026

Copy as markdown

How this is calculated

Formula

spread = marketable debt cost − last daily DGS10 on or before month-end

Weighted average interest cost of marketable Treasury debt (Average Interest Rates dataset, Total Marketable) versus the daily constant-maturity 10-year Treasury yield (FRED DGS10). For each cost month-end, the 10Y is the last daily print on or before that date.

As of July 2026, the latest readings are Marketable debt cost at 3.44% and 10-year Treasury yield at 4.75%. The Marketable debt cost line is up 0.0 pp over the past year and above its long-run median of 2.06%.

Source series

U.S. Treasury

Plottedmarketable-cost-10yMarketable debt cost% · monthly · Not seasonally adjusted Plotteddgs1010-year Treasury yield% · monthly · Not seasonally adjusted

How to read it

What the spread means

A negative spread means the Treasury's average borrowing cost is below the current 10-year yield. It locked in cheaper debt in the past. The spread narrows as old low-rate debt matures and is refinanced at higher rates. A positive spread would mean the average exceeds current yields.

Limitations

The average cost is weighted across all outstanding marketable securities and excludes some floating / inflation-linked categories in the published Total Marketable average. DGS10 is a constant-maturity daily point sampled at month-end. Treat the chart as context for Treasury funding costs, not investment advice.

How this benchmark is used

The debt re-pricing window

Every month the spread narrows, the budget's interest-expense line climbs. The spread tracks how much of a rate-hike cycle has already filtered into the Treasury's average cost.

Frequently asked questions

4 answers

What is the current treasury debt cost vs 10Y yield?

As of July 2026, the latest readings are Marketable debt cost at 3.44% and 10-year Treasury yield at 4.75%. The Marketable debt cost line is up 0.0 pp over the past year and above its long-run median of 2.06%.

How often is this benchmark updated?

This benchmark is built on monthly data. The page is refreshed when the source publishes new observations; the freshness block below the chart shows the exact data-through date and when PIER20 last fetched the file.

What data sources does this chart use?

The chart is built from Marketable debt cost and 10-year Treasury yield, sourced from the U.S. Department of the Treasury, Fiscal Data.

Why does the average cost lag the 10Y?

The average is a stock cost across the debt portfolio, much of which was issued at low rates. The 10Y is a flow price for new money. The two converge slowly as old debt matures.

MarkdownMachine-readable version of this benchmark