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I have a question on treasuries. Listening to Marketplace yesterday Kai Ryssdal mentioned a change in the price of the 10-year treasury note, the yield went up so prices went down. The yield vs. price thing is an easy one I have no issues understanding that. I do have a question on what is actually being priced though.

On January 15 the yield on a treasury is 2.000%, call it the 10-year note. Two weeks later the yield on the 10-year is now 2.250% so the price has gone down. Does the end-of-January price reflect the same bond as the one in mid-January or is this a new 10-year bond? Same question if only looking at a couple of days versus an entire month or if comparing the yield three months apart.

I was thinking the price is reflective of a single 10-year until the next auction, so if the feds auction the 10-year the first day of each month the price is reflecting the most recently auctioned bonds.

Thanks all.

-canam
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