Bond Yield

Definition ∞ Bond Yield represents the return an investor receives on a bond relative to its current market price. It quantifies the income an investor earns from holding a debt instrument. This metric reflects the interest payments from the bond issuer and its market value.
Context ∞ Fluctuations in bond yields, especially those of government bonds, serve as a significant indicator for global liquidity and investor risk sentiment. Higher bond yields in traditional markets can divert capital away from more speculative assets like cryptocurrencies, influencing overall market direction and capital allocation decisions. News regarding yield movements often impacts digital asset valuations.