One one-hundredth of one percent. Such a small measurement is especially helpful in expressing the often small but significant variations in bond yields. For example, the difference between a 12.83-percent yield and a 12.88-percent yield is five basis points.
In the case of stock shares, a point equals $1. If ABC shares rise 3 points, each share has risen $3 in price. In the case of bonds, a point equals $10 because bonds are quoted as a percentage of $1,000. An advance from 87 to 90 would mean a rise in value of $30 from $870 to $900.