RATES
Basis Point
One hundredth of one percentage point.
Market use
The standard unit for many yield and spread changes.
What it means
One hundredth of one percentage point.
Example
25 bp equals 0.25 percentage point.
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.
Related Conventions
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.