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The Fed’s historical chart of the 10 year treasury yield is titled “10-Year Treasury Constant Maturity.” How exactly is the yield calculated?

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From the US Treasury FAQ:

"CMT rates are read from fixed, constant maturity points on the curve and may not match the exact yield on any one specific security ... For example, the 20-year daily yield curve rate (i.e., the 20-year CMT) represents the yield for a new theoretical 20-year bond as of that date."

Due to aging of the 10 year and 20 year bonds, the Treasury employs cubic splines to interpolate the exact 10 year bond yield value and quotes using a par yield convention (Bond Equivalent Yield/Semi-Annual Compounding), not zero coupon yield.

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