Recent Examples of basis point from the Web
After retracing somewhat, the July contract is now printing about 22 basis points above the Fed effective rate of 1.70 percent.
By May 23rd the gap between the yields on Italian and German government ten-year bonds, which reflects concern over Italy’s ability to service its public debt, had grown to more than 190 basis points from 114 on April 24th.
Rising rates isn't exactly a new problem for markets — the 10-year yield jumped 30 basis points in January alone — but this time the rise is driven by surging commodity prices, not heady economic gains.
Britain’s 10-year yield declined two basis points to 1.558 percent.
Get our daily newsletter In a sign of investors’ concern, the yield gap between Italian and German benchmark government bonds soared from 190 basis points on May 28th to more than 300.
Treasuries rose, with 10-year yields falling 5 basis points.
That outperformance has helped push spreads on the Bank of America Merrill Lynch gauge of CCC rated debt to below 700 basis points earlier this week — the smallest premium since July 2014.
Yields on Italian government bonds have risen by more than 60 basis points over the past three weeks as investors worry the new government could follow through on its promises to challenge European Union orthodoxy.
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.
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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