Yields on Treasury bonds fluctuate just like any other debt security. T Bonds are long term (10-30 years) and pay interest semi-annually.
Because US Treasury Bonds are AAA rated with higher credit quality than corporate bonds or other debt securities, their yields tend to be lower than others. However, they are very liquid and trade very close to the interest rate or yield markets.
http://www.aitraining.com/treasurybond.htm
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T Bonds interest rates move opposite of Treasury bond prices. If the market is up - that means the prices of these securities, which results in lower yields or rates of return.
When demand is higher, prices will naturally rise - this brings the yields lower.
Existing Treasury bondholders want interest rates to fall after they purchase. If prices do rise, the investor can sell the bonds at a profit.
Treasury Bond Yield
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