- basis point
- A unit of measurement for interest rates or yields that is expressed as a percentage. One-hundredth of one percent. One hundred basis points equal one percent.
__American Banker Glossary__————In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points higher than an interest rate of 4.5%. Sometimes referred to as BPS, BIPS, and pronounced " Bips"————One-hundredth (.01) of a full index point.__Chicago Mercantile Exchange Glossary__————One hundredth of one percent (0.01%).__Dresdner Kleinwort Wasserstein financial glossary__————**basis point ( bp)**1% of 1%.__Exchange Handbook Glossary__————A hundredth of one per cent (0.01 per cent).————( bp)A change in the interest rate of 1/100 of 1%. Therefore, one basis point (1 bp) is equivalent to 0.01%.__LIFFE__* * *

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One hundredth of a percentage point, or 0.01, the standard market measure for interest rates and bond yields.* * *

**basis point**__UK____US____noun__[__C__]**►**__FINANCE__,__ECONOMICS__used in relation to interest rates to mean one-hundredth of one percent: »This Treasury note yielded 6.60% this morning, down four basis points from last week.

*Financial and business terms.
2012.*