> The yield – or interest rate – on the benchmark 10-year US Treasury bond rose to 4.516% on Wednesday before slipping back to 4.451%, up 0.14 percentage points on the day.
Q is anyone knows: would yield on the 10y going down actually help the US to refinance its existing debt (akin to a mortgage refinance), or simply issue new debt more cheaply?
New debt would be cheaper. Most US treasuries are fixed rate debt. There may be some FRNs (floating rate notes) floating around (pardon the pun) but not many. Tbills are discount instruments but also wouldn’t be affected until they mature and new ones are issued.
