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MARKET MATH

Basis Point Conversion

Converts rate changes between common market units.

Formula

1 bp = 0.01 percentage point = 0.0001 decimal

Variables: Basis points; percentage points

What it means

Converts rate changes between common market units.

Example

A 25 bp move equals 0.25 percentage point or 0.0025 in decimal form.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.