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MONEY MARKETS

Money Market Yield

Expresses short-term return relative to invested price rather than face value.

Formula

MMY = (F-P)/P × basis/days

Variables: F face value; P price; basis; days

What it means

Expresses short-term return relative to invested price rather than face value.

Example

The same bill will generally show a different money-market yield than bank discount yield because the denominator differs.

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.