Line chart of the current US Treasury yield curve, from the shortest bill to the thirty-year bond, as held on this site. Nominal yields only.

Bonds

International and Emerging-Market Bonds

Bonds issued outside the United States, by foreign governments and companies, in dollars or in their own currency. The coupon is only part of the return; the exchange rate is the other part.

Data as of Aug 21, 2026.

International bonds split along one line that matters more than any other: the currency they pay in. Hard-currency bonds are issued by a foreign government or company but denominated in US dollars, so a US holder faces credit risk without currency risk. Local-currency bonds pay in the issuer's own money, and your return depends on the exchange rate as much as on the coupon.

The second split is developed versus emerging. A developed-market sovereign is a different credit proposition from a frontier issuer, even though both appear in the same broad category and often in the same fund.

Sovereign credit also works differently from corporate credit. There is no bankruptcy court for a country. A restructuring is a negotiation, governed by the bond's legal jurisdiction and its collective action clauses, and the outcome depends on willingness to pay as much as ability.

If the bond pays in dollars you are taking credit risk only. If it pays in another currency you are taking a view on that currency too — and the currency move can easily be larger than the coupon.

At a glance

Issuer, backing, term and how the cash actually reaches you.

Who issues them

Foreign national governments, their agencies and provinces, supranational institutions such as development banks, and non-US corporations. Some issue into the US market under US law; others issue at home under their own.

What backs them

A sovereign's taxing power and its willingness to pay, or a company's cash flow. The legal jurisdiction is part of the backing: bonds issued under New York or English law behave differently in a restructuring from bonds issued under local law.

Typical maturities

The full curve, from short bills to thirty years and occasionally beyond. Emerging sovereigns concentrate issuance in the 5 to 30 year range in dollars, and shorter in local currency.

How you get paid

Usually a semi-annual coupon. Local-currency bonds pay in that currency and your broker or fund converts, so the dollar amount you receive moves with the exchange rate even when the coupon does not.

What it pays right now

Live series from our rates table, each labelled with what it measures, who published it and when. Index and benchmark levels, not the price of a specific bond.

All bond rates →

In text, the series shown below currently read: 10-year Treasury at 4.74%; Investment-grade corporate bonds at 5.43%. These rows are quoted on more than one basis, so they are listed rather than ranked — the Basis column says which convention each one uses. Each row carries the basis it is quoted on and the exact series that supplies it.

Three things to know before you read a number in this table. Each row is a published series, not a bond for sale — several of these are averages across hundreds of bonds, and an average is not a price anyone will fill you at. The Basis column says what each row measures, and rows measured differently are not comparable with one another however close the numbers look. And the Observed column dates the reading: NOT CURRENT means the publisher is overdue and the figure shown is the last one they released, not today's. The note under the table says which rows belong to this category and which are here only as a benchmark to measure it against.

Latest published observation for each series. Yields and rates are percent per year; spreads are percentage points; the change column is the move in percentage points from the previous published observation of that same series, not a price return. Any reading past its publication cadence is marked NOT CURRENT.
Series LatestThe most recent published reading. Percent per year, unless the basis says points. Change BasisWhat the number measures. Two rows on different bases cannot be compared. Provider · series Observed
10-year Treasury 4.74% +0.05 pts Constant-maturity yield US Treasury via FRED · DGS10 Aug 21, 2026
Investment-grade corporate bonds 5.43% +0.02 pts Index effective yield ICE BofA index via FRED · BAMLC0A0CMEY Aug 21, 2026

We do not currently carry foreign sovereign yield series, so nothing here is an international bond yield. These are the two US benchmarks international bonds are measured against: the 10-year constant-maturity Treasury yield (US Treasury via FRED) and the ICE BofA US investment-grade corporate index effective yield (via FRED). Neither is adjusted for currency, and currency is usually the larger part of an unhedged international return.

Index and fund figures only
These are index and fund figures. We do not price individual bonds: a specific CUSIP trades over the counter at a dealer's quote that depends on size, day and inventory, and no page here can tell you what you would actually be filled at.

How the income is taxed

US federal and state treatment. Rules change; this is the structure, not tax advice.

Why this section sits between the rates and the risks rather than at the end: two bonds quoting the same number do not pay you the same amount. Bond interest is generally taxed as ordinary income federally, at your own marginal rate, and what differs between the families is whether your state also taxes it and whether any federal exemption applies. A headline yield is a before-tax figure everywhere on this site, so the comparison that matters to you is the one made after the paragraphs below.

The short version
Interest from foreign bonds is ordinary income to a US holder, taxable federally and by your state. Withholding on interest is less common than on dividends but does occur, and a foreign tax credit may offset it.

Funds report on Form 1099 and pass through any foreign tax paid, which you may be able to claim as a credit or a deduction. Holding a foreign-bond fund inside an IRA can make that credit unusable.

Currency gains and losses on individual foreign-currency bonds have their own tax treatment separate from the interest, which is one reason most US investors reach these markets through funds rather than directly.

Nothing here is state-tax exempt. The Treasury exemption is a US federal-issuer feature and does not travel.

Funds that hold these

Exchange-traded funds in our universe tagged to this category, sorted by trailing 12-month distribution yield.

5 funds tagged to this category are listed below. Trailing twelve-month distribution yields run from 4.54% on BNDX to 6.13% on EMLC, with a median of 5.83% across the 5 funds that have paid a distribution in the past year. 5 of them pay monthly rather than quarterly. Every figure in that column is trailing cash already paid over the last 365 days divided by the latest price — a distribution yield, not a forward yield, not a yield to maturity and not an SEC 30-day yield.

A fund is how most people end up owning this category, and it is not the same instrument as the bonds inside it. The yield column here counts the cash already paid out over the last year against today's share price, so it describes what has happened rather than what the holdings are contracted to earn — the two can differ by a wide margin in either direction. The other difference is the one people notice late: an individual bond has a date on which it repays, and a fund does not. It keeps selling and rebuying, so there is no maturity to wait for if the price falls.

A research screen of bond ETFs in our universe, sorted by trailing distribution yield. Not a recommendation and not a ranking of quality. Prices and distribution history: Financial Modeling Prep; the yield column is computed here as trailing 12-month cash paid divided by the latest price.
Ticker Fund HoldsThe kind of bonds the fund lends through. Price Distribution yield, trailing 12mCash the fund has already paid out over the past year, divided by today's price. Cash paid / share, trailing 12m Pays
EMLC VanEck J.P. Morgan EM Local Currency Bond ETF International $25.91 6.13% $1.59 Monthly
PCY Invesco Emerging Markets Sovereign Debt ETF International $21.16 5.94% $1.26 Monthly
VWOB Vanguard Emerging Markets Government Bond ETF International $66.31 5.83% $3.86 Monthly
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF International $95.38 5.11% $4.87 Monthly
BNDX Vanguard Total International Bond ETF International $47.91 4.54% $2.18 Monthly
What a distribution yield is not
Distribution yield here is the cash actually paid out over the last twelve months divided by the current price — a trailing measure of money that has already been distributed. It is not a forward yield (the last payment annualised), it is not a yield to maturity, and it is not the SEC 30-day yield, which we do not carry. Read it as what the fund has recently paid, not as what its holdings are contracted to earn: a fund holding older bonds bought at higher coupons can distribute more than its portfolio currently yields, and vice versa.

How it loses money

The specific failure modes for this category, not a generic warning.

Most people arrive at bonds expecting the only question to be whether the borrower pays. The list below is the answer to a different question: the ways the money shrinks while every payment arrives exactly on schedule. Prices fall when new bonds pay more than yours, inflation can outrun a fixed payment, and a borrower who repays early hands the cash back at the worst moment to reinvest it. Read these before the yield, not after it.

What can go wrong
Two risks stack here that do not stack anywhere else in this section: the issuer might not pay, and the money it pays in might be worth much less by the time it reaches you. Currency alone can swamp the entire yield advantage in either direction, and a hedged share class removes that swing only by paying an ongoing cost tied to the rate differential.

Where these are traded

TreasuryDirect

The Treasury's direct issuance channel for notes, bonds and TIPS, including non-competitive bids at auction without a broker.

Holdings there cannot be sold before maturity without transferring them to a broker first

Visit TreasuryDirect ↗
MSRB EMMA

The Municipal Securities Rulemaking Board's official disclosure site, carrying offering documents, reported trade prices and continuing disclosures for municipal bonds.

Free official source; no account needed

Visit MSRB EMMA ↗
FINRA

The broker-dealer regulator that runs the TRACE trade-reporting system for corporate, agency and municipal bond transactions and publishes market data from it.

Also hosts BrokerCheck for looking up a firm or registered rep

Visit FINRA ↗
Fidelity Investments

Runs a retail bond desk with new-issue and secondary inventory across Treasuries, municipals, corporates, agencies and brokered CDs.

Individual bond pricing is quoted net of a dealer markup rather than as a separate commission

Visit Fidelity Investments ↗

Listed for reference. No sponsorship badge means no affiliate relationship exists.

Frequently asked

What is the difference between hard-currency and local-currency bonds?
Hard-currency bonds are issued by a foreign borrower but denominated in US dollars, so a US holder takes credit risk without exchange-rate risk. Local-currency bonds pay in the issuer's own money, so the dollar value of every coupon and of the principal moves with the exchange rate.
Does a currency-hedged bond fund remove the risk?
It removes most of the exchange-rate movement and replaces it with a cost. The cost of the hedge tracks the short-term interest-rate differential between the two currencies, so hedging a high-rate currency back into dollars can consume a large share of the yield.
What happens when a country defaults?
There is no bankruptcy court for a sovereign. Creditors and the government negotiate an exchange into new bonds with reduced value, guided by the bond's governing law and its collective action clauses. Timelines run in years and holdout litigation is common.
Do I owe foreign tax on the interest?
Sometimes. Withholding on interest is less common than on dividends, but where it applies a foreign tax credit may offset it on your US return. Holding the fund in a tax-deferred account can make that credit unusable.

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