Recent Examples of basis point from the Web
Spain’s benchmark stock index closed up 1.4 percent, while yields on 10-year bonds dropped 6 basis points to 1.63 percent.
Grant noted that a senior unsecured bond, due in 2022, issued by Carrefour S.A., the world’s second-largest food retailer after Walmart, yields just 50 basis points, or half of 1 percent annually.
The 10-year benchmark Treasury yield dropped 8.7 basis points to 2.07 percent as investors sought haven assets.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'basis point.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of basis point
Financial Definition of BASIS POINT
What It Is
A basis point is one hundredth of one percent.
How It Works
There are one hundred basis points in one percent.
Let's say Bank XYZ pays 2.54% interest on its savings accounts. A month later, it raises the rate to 2.75%. We would say that rate increased by 21 basis points.
Why It Matters
Basis points are in anything that is expressed as a percentage: interest rates, rates of return, bond coupons, rates of change and much more. Because tiny changes can have big effects, it is no surprise that the markets are concerned about hundredths of a percent.
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