basis point

noun

: one hundredth of one percent (as in the yield of an investment)

Examples of basis point in a Sentence

Recent Examples on the Web
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This difference was typically 100 basis points, meaning the discount rate was 1% higher than the federal funds rate target. John S. Tobey, Forbes.com, 11 May 2025 The 2-year Treasury yield edged lower by less than one basis point to 3.889%. Pia Singh,sawdah Bhaimiya, CNBC, 9 May 2025 The increase in gross margin rate was driven by about 330 basis points related to lower promotional activity and discounting and about 320 basis points due primarily to lower product costing and freight costs. David Moin, Footwear News, 2 May 2025 The difference, or spread, between German sovereign bonds and the 10-year Treasury is more than 1.5 percentage points (or 150 basis points, in bond jargon), and has occasionally exceeded two percentage points. Jeff Sommer, New York Times, 2 May 2025 See All Example Sentences for basis point

Word History

First Known Use

1962, in the meaning defined above

Time Traveler
The first known use of basis point was in 1962

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Cite this Entry

“Basis point.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/basis%20point. Accessed 17 May. 2025.

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