A dollar-denominated bond that is sold in the United States (and hence the description “yankee”- a native or inhabitant of the United States) by a non-domiciled issuer. Such a bond is typically issued by a foreign bank or financial institution (which attempt to raise funds in the United States) and is purchased by U.S investors without being exposed to price fluctuations related to movements in exchange rates or to foreign tax. The price of a yankee bond is influenced principally by changes in domestic (U.S) interest rates and the creditworthiness of its issuer.

The yankee bond is an equivalent to a Eurobond.