Strategy
5-Year Treasury Ladder (Oct 7, 2026)
On Oct 7, 2026, a 5-year Treasury ladder of $100,000 yields 4.93% across 5 notes maturing from Oct 15, 2027 to Sep 30, 2031, with a modified duration of 2.81 years. A 1 basis point rise in rates lowers its value by about $28.
These are calculations derived from publicly available U.S. Treasury data. They are not investment advice or a recommendation to buy or sell any security.
Free 30-day trial, no card
The rule
- One rung for each year from one to five years after settlement, five rungs in all.
- Each rung is the Treasury note or bond, excluding TIPS and floating-rate notes, whose maturity is nearest to that year.
- Equal dollar amounts in each rung, bought in $1,000 face steps at the day's end-of-day price.
- The basket is rebuilt from the day's prices every business day. Held over time, a ladder reinvests each maturing rung at the five-year end, which keeps its shape.
A published rule applied to public prices, the same for every reader.
Today's rungs, for $100,000
| Security | CUSIP | Price | Yield | Face | Cost | Weight |
|---|---|---|---|---|---|---|
| 3.875% Oct 2027 Note | 91282CLQ2 | 99.375 | 4.508% | $19,000 | $19,235 | 19.6% |
| 3.5% Oct 2028 Note | 91282CPC9 | 97.53125 | 4.796% | $20,000 | $19,843 | 20.2% |
| 3.875% Sep 2029 Note | 91282CFL0 | 97.15625 | 4.913% | $20,000 | $19,448 | 19.8% |
| 4.625% Sep 2030 Note | 91282CHZ7 | 98.6875 | 4.993% | $20,000 | $19,758 | 20.2% |
| 3.625% Sep 2031 Note | 91282CLM1 | 93.8125 | 5.046% | $21,000 | $19,717 | 20.1% |
Prices are Treasury's end-of-day prices for Oct 7, 2026; cost includes accrued interest to settlement on Oct 8, 2026. $1,998 is left over after rounding to $1,000 steps.
What the ladder holds
- Yield
- 4.93%
- Yield to maturity of the whole basket
- Modified duration
- 2.81
- Years
- DV01
- $28
- Value change for a 1 bp move
- Financed carry
- +1.05%
- Yield minus SOFR of 3.88% on Oct 7, 2026
If the curve does not move, the ladder returns +1.27% over the next three months from coupons and from rolling down the curve, valued on Safe Rate's fitted curve for Oct 7, 2026.
If rates move
| Move | Value change | Percent |
|---|---|---|
| Rates +100 bp | −$2,706 | −2.76% |
| Rates +50 bp | −$1,365 | −1.39% |
| Rates −50 bp | +$1,389 | +1.42% |
| Rates −100 bp | +$2,803 | +2.86% |
| 2s10s steepens 25 bp | +$206 | +0.21% |
| 2s10s flattens 25 bp | −$205 | −0.21% |
Every cashflow repriced off the fitted curve after an immediate, one-time shift. A steepening moves the 2-year down and the 10-year up by half the amount each, linearly between. These are sensitivities, not forecasts.
Income calendar
| Year | Coupons and maturities |
|---|---|
| 2026 | $718 |
| 2027 | $22,898 |
| 2028 | $23,161 |
| 2029 | $22,461 |
| 2030 | $21,686 |
| 2031 | $21,761 |
Sources
- Prices: Treasury's end-of-day prices (FedInvest), a U.S. government publication, for Oct 7, 2026.
- Curve, duration and scenarios: Safe Rate's fitted Treasury curve. How it is built and how closely it tracks the Federal Reserve's: Treasury curve methodology.
- SOFR: Federal Reserve Bank of New York, Oct 7, 2026. Content from the New York Fed, subject to the Terms of Use at newyorkfed.org. The New York Fed is not responsible for this publication, does not sanction, endorse or recommend it, and has no liability for its use. Safe Rate is not affiliated with the New York Fed.