">Basis Points (bps)

A basis point represents one hundredth of a percent.

In other words, 1.00% = 100 basis points.

The difference between 3.49% and 3.29%, for example, is 20 basis points.

Basis points, often abbreviated as “bps,” are a common unit of measurement when discussing small movements in interest rates and bond yields.

See also: Percentage points