Market Yield on U.S. Treasury Securities at 3-Year Constant Maturity, Quoted on an Investment Basis
DGS3 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
3.66
Year-over-Year Change
-2.92%
Date Range
10/8/2021 - 8/7/2025
Summary
The 3-Year Treasury Yield (DGS3) represents the market's expected return on U.S. government debt with a three-year maturity. This metric is a critical indicator of short-to-medium term interest rate expectations and investor sentiment about economic conditions.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This yield reflects the current market price of government debt and serves as a benchmark for various financial instruments and lending rates. Economists and investors closely monitor this rate as a signal of economic outlook, inflation expectations, and potential monetary policy shifts.
Methodology
The yield is calculated daily based on the most recently auctioned 3-year Treasury notes, representing the theoretical rate of return if the security is held to maturity.
Historical Context
Central banks, financial institutions, and policymakers use this yield as a key input for economic forecasting, investment strategies, and assessing overall market liquidity.
Key Facts
- Represents the government's borrowing cost for a 3-year period
- Influenced by Federal Reserve policy and market expectations
- Used as a benchmark for various financial products and loans
FAQs
Q: How does the 3-Year Treasury Yield impact mortgage rates?
A: The 3-Year Treasury Yield serves as a reference point for many adjustable-rate mortgages and can influence short-to-medium term lending rates in the broader financial market.
Q: What causes changes in the 3-Year Treasury Yield?
A: Yield fluctuations are driven by factors including Federal Reserve monetary policy, inflation expectations, economic growth projections, and overall market sentiment.
Q: How often is the DGS3 data updated?
A: The 3-Year Treasury Yield is updated daily on business days, reflecting the most current market conditions and investor expectations.
Q: Why do investors care about this yield?
A: Investors use this yield to assess potential returns, evaluate economic conditions, and make informed decisions about fixed-income investments and portfolio strategies.
Q: What are the limitations of using this yield?
A: While informative, the 3-Year Treasury Yield represents a snapshot of market conditions and should be considered alongside other economic indicators for comprehensive analysis.
Similar DGS Trends
Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity, Quoted on an Investment Basis
DGS30
Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed
DFII30
Market Yield on U.S. Treasury Securities at 7-Year Constant Maturity, Quoted on an Investment Basis
DGS7
Market Yield on U.S. Treasury Securities at 20-Year Constant Maturity, Quoted on an Investment Basis
DGS20
Market Yield on U.S. Treasury Securities at 1-Month Constant Maturity, Quoted on an Investment Basis
DGS1MO
Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed
DFII10
Citation
U.S. Federal Reserve, Market Yield on U.S. Treasury Securities at 3-Year Constant Maturity, Quoted on an Investment Basis [DGS3], retrieved from FRED.
Last Checked: 8/1/2025