📊 U.S. Treasury Yield Thermometer

Updated: Sep 17, 2026

10-Year

Yield 4.94%

Full History Pctl 33.0%Fair

1-Year Pctl 2.0%Extremely Cheap

30-Year

Yield 5.29%

Full History Pctl 35.6%Fair

1-Year Pctl 2.4%Extremely Cheap

Key Spread

10Y-2Y 0.27%

1-Year Pctl 1.6%Extremely Low (Inversion)

📈 Multi-Window Valuation Percentile Table (since 1990)

IndicatorLatest
Yield (%)
1-Year
Price Pctl
3-Year
Price Pctl
5-Year
Price Pctl
10-Year
Price Pctl
Full History
Pctl
Valuation
(Full History)
* Yield indicators use price percentile (higher = expensive); spread indicators use value percentile (higher = steeper curve).
1Y4.40%0.4%31.0%36.7%18.3%33.8%Fair
2Y4.67%0.6%16.9%16.2%8.1%30.6%Fair
3Y4.75%0.8%6.9%4.2%2.1%28.7%Undervalued
5Y4.78%1.4%1.9%1.2%0.6%31.5%Fair
10Y4.94%2.0%0.9%0.6%0.3%33.0%Fair
20Y5.32%2.0%0.7%0.4%0.2%27.8%Undervalued
30Y5.29%2.4%0.8%0.5%0.2%35.6%Fair
Spread IndicatorLatest Spread (%) 1-Year
Value Pctl
3-Year
Value Pctl
5-Year
Value Pctl
10-Year
Value Pctl
Full History
Pctl
Spread Status
(1-Year)
10Y-2Y Spread0.27%1.6%45.5%56.6%42.5%26.7%Extremely Low (Inversion)
30Y-10Y Spread0.35%0.8%50.9%63.8%43.0%41.6%Extremely Low (Inversion)
5Y-2Y Spread0.11%15.9%64.7%63.3%46.1%26.5%Low (Flat)

📊 Multi-Period Change Comparison

Period10Y Yield Change10Y Price Pctl Change10Y-2Y Spread Change
Week4.95→4.94% (-1bp)32.9%→33.0% (+0.1%)0.39→0.27% (-12bp)
Month4.71→4.94% (+23bp)36.3%→33.0% (-3.3%)0.52→0.27% (-25bp)
Quarter4.46→4.94% (+48bp)42.2%→33.0% (-9.2%)0.27→0.27% (+0bp)
Half Year4.25→4.94% (+69bp)47.4%→33.0% (-14.3%)0.46→0.27% (-19bp)
Year4.06→4.94% (+88bp)52.7%→33.0% (-19.7%)0.54→0.27% (-27bp)
📌 Chart 1: Upper panel shows short-end yields, lower panel shows long-end yields, covering a full rate cycle over the past decade.
📌 Chart 2: 10Y-2Y spread is a classic recession indicator; 30Y-10Y reflects long-end supply/demand; 5Y-2Y is sensitive to near-term policy.
📌 Chart 3: Price percentile = 1 - yield percentile. >90% extremely expensive, <10% extremely cheap. Historical percentiles are for reference only, not investment advice.

🧠 Summary & Tactical Reference

10-Year Treasury: Full history percentile 33.0% (Fair), 1-Year 2.0% (Extremely Cheap).

30-Year Treasury: Full history percentile 35.6% (Fair), 1-Year 2.4% (Extremely Cheap).

10Y-2Y Spread: 1-Year value percentile 1.6%, Spread extremely low (curve flat/inverted). ⚠️ Classic recession warning signal.

📎 Key Levels
• YTD 10Y price percentile high: 55.2% | low: 32.3%
• 10Y yield one year ago: 4.06% (YoY +88bp)

Special reminder: As a global safe-haven asset, Treasury valuations may be distorted during panic episodes. This model is based on data from 1990 to present. Past performance does not guarantee future results.

📅 Historical Valuation Regime Duration Statistics (Based on Full History)

Valuation RegimeOccurrencesAvg Duration (days)Min (days)Max (days)Median (days)
Extremely Expensive1263616214
Overvalued1681514303
Fair5537110293
Undervalued2631112
Extremely Cheap1541153

Current percentile band: 30-40%, lasted 43 days

📅 Percentile Band Duration Statistics (10% buckets)

BucketOccurrencesAvg Duration (days)Min (days)Max (days)Median (days)
0-10%1541153
10-20%202181
20-30%162142
30-40%3561461
40-50%73811022
50-60%8481574
60-70%8071712
70-80%1011012403
80-90%187812042
90-100%1263616214

💡 Interpretation: Historical duration statistics for each valuation regime and percentile bucket. Past patterns do not guarantee future results.

📈 Forward Return Statistics (Historical, Not Predictive)

Valuation ZoneSamples1M Avg1M Win Rate3M Avg3M Win Rate6M Avg6M Win Rate12M Avg12M Win Rate
Extremely Cheap620.27%50%1.13%63%1.30%47%5.79%90%
Undervalued740.29%55%2.30%76%3.69%72%7.24%99%
Fair20380.08%52%0.36%52%1.08%58%2.56%63%
Overvalued24620.16%57%0.66%58%1.30%65%2.67%65%
Extremely Expensive45450.00%50%-0.13%47%-0.30%48%-0.78%51%

⚠️ Return calculated as approximate duration (-8 × yield change). Small sample size in extreme zones may distort averages.

Tactical Reference:
• Long-term allocators: Current status Fair, not suitable for heavy positions. Wait for price percentile to drop into the 30%-70% fair range.
• Short-term traders: 30Y 1-year percentile Extremely Cheap, consider light positions with tight stops.
• Bond fund investors: Prefer short-duration funds; QDII bond funds should additionally monitor currency risk.

📊 Strategy Backtests (5 Selected Strategies, No Leverage, 4 bps Cost)

⚠️ Important: The following backtest results are ex-post validations based on historical data and do not represent real-time trading signals. Because free public data for U.S. Treasury ETFs is difficult to obtain, the backtest parameters were pre-computed and are not updated daily. When ETF prices or dividend files change significantly, the backtest must be re-run manually to update the results. Past performance does not guarantee future results.

SHY

StrategyAnn. ReturnSharpeMax DDAvg PosCum. ReturnRebalance Rule
Buy and Hold1.57%-0.28-5.71%100.0%18.42%Always fully invested
Simple Linear (1Y 10Y)1.33%-0.50-4.58%72.5%15.44%Position = 1 - 1Y price percentile (10Y window)
Pure Return Optimal (H+Vol)1.61%-0.29-3.88%83.2%18.93%Dual-factor valuation H, vol >2.0x mean halves position
Comprehensive Optimal (H+MA150)0.62%-1.36-2.57%38.1%6.90%2Y valuation H, only long when price above 150-day MA
Extreme Reversal+H (1Y 5Y)0.73%-0.98-2.45%63.1%8.17%1Y pctl <0.05 full long, >0.95 flat, else valuation H * 20-day MA

IEF

StrategyAnn. ReturnSharpeMax DDAvg PosCum. ReturnRebalance Rule
Buy and Hold1.14%-0.10-23.92%100.0%13.13%Always fully invested
Simple Linear (2Y 10Y)1.18%-0.13-17.84%70.8%13.58%Position = 1 - 2Y price percentile (10Y window)
Pure Return Optimal (H+Vol)1.89%0.01-17.91%87.8%22.56%Dual-factor valuation H, vol >1.5x mean halves position
Comprehensive Optimal (H+MA90)1.62%-0.08-7.36%39.9%19.04%2Y valuation H, only long when price above 90-day MA
Extreme Reversal+H (2Y 10Y)0.06%-0.34-13.96%56.4%0.62%2Y pctl <0.05 full long, >0.95 flat, else valuation H * 20-day MA

TLT

StrategyAnn. ReturnSharpeMax DDAvg PosCum. ReturnRebalance Rule
Buy and Hold2.40%0.10-44.69%100.0%36.18%Always fully invested
Simple Linear (3Y 5Y)2.82%0.13-33.66%67.5%43.72%Position = 1 - 3Y price percentile (5Y window)
Pure Return Optimal (H+Vol)4.21%0.23-39.18%89.6%71.13%Dual-factor valuation H, vol >1.5x mean halves position
Comprehensive Optimal (H+MA30)1.89%0.02-17.71%32.0%27.58%3Y valuation H, only long when price above 30-day MA
Extreme Reversal+H (2Y 5Y)1.49%0.00-32.65%58.4%21.18%2Y pctl <0.05 full long, >0.95 flat, else valuation H * 20-day MA

EDV

StrategyAnn. ReturnSharpeMax DDAvg PosCum. ReturnRebalance Rule
Buy and Hold2.62%0.14-59.84%100.0%61.07%Always fully invested
Simple Linear (2Y 1Y)3.09%0.15-51.52%52.3%75.17%Position = 1 - 2Y price percentile (1Y window)
Pure Return Optimal (H)5.05%0.27-53.09%63.8%147.68%2Y valuation H, scale 0.8
Comprehensive Optimal (H+MA30)1.78%0.02-22.28%28.7%38.31%3Y valuation H, only long when price above 30-day MA
Extreme Reversal+H (2Y 1Y)-0.30%-0.12-54.96%43.6%-5.47%2Y pctl <0.05 full long, >0.95 flat, else valuation H * 20-day MA
💡 Usage Guide (click to expand)

Price Percentile: Price percentile = 1 - yield percentile. High percentile = expensive, low = cheap.

Valuation Zones: >90% Extremely Expensive, 70-90% Overvalued, 30-70% Fair, 10-30% Undervalued, <10% Extremely Cheap.

Spreads: Value percentile; high = steep curve, low = flat/inverted curve.

Valuation H function: Piecewise position function; lower percentile leads to heavier position, fully long when extremely cheap, minimal position when extremely expensive.

Strategy Backtest: Actual ETF prices + dividend total return, 4bp cost, previous day's signal, position 0~1 no leverage. Historical returns do not guarantee future results.