RATES
Percentage Point
An absolute difference between percentages rather than a relative percentage change.
Market use
Useful when discussing policy rates and yields.
What it means
An absolute difference between percentages rather than a relative percentage change.
Example
A rate rising from 3% to 4% rises by 1 percentage point, or about 33.3% relative to the starting rate.
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.