Moody's Seasoned Aaa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity
This dataset tracks moody's seasoned aaa corporate bond yield relative to yield on 10-year treasury constant maturity over time.
Latest Value
1.08
Year-over-Year Change
0.00%
Date Range
1/3/1983 - 8/5/2025
Summary
This trend tracks the yield of top-rated corporate bonds compared to 10-year U.S. Treasury bonds, providing insight into corporate borrowing costs and market risk perception. It serves as a critical indicator of credit market conditions and investor sentiment.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The AAA10Y metric represents the spread between high-quality corporate bond yields and government Treasury yields, reflecting the risk premium investors demand for corporate debt. Economists and financial analysts use this spread to assess economic health, credit market dynamics, and potential recessionary signals.
Methodology
Data is collected from Moody's bond ratings and U.S. Treasury yield curves, calculated by subtracting the 10-year Treasury constant maturity rate from the Aaa-rated corporate bond yield.
Historical Context
Central banks, investment managers, and policymakers use this trend to evaluate credit market conditions, assess economic risk, and inform monetary policy decisions.
Key Facts
- Represents the risk premium for top-rated corporate bonds
- Wider spreads typically indicate higher perceived economic risk
- Provides insights into corporate borrowing costs and market sentiment
FAQs
Q: What does a widening AAA10Y spread indicate?
A: A widening spread suggests increased perceived risk in corporate lending and potential economic uncertainty. Investors are demanding higher returns for corporate bonds relative to government securities.
Q: How often is this data updated?
A: The AAA10Y data is typically updated daily, reflecting real-time changes in corporate bond and Treasury yields.
Q: Why are Aaa-rated bonds significant?
A: Aaa-rated bonds represent the highest credit quality, indicating minimal default risk from top-tier corporations with strong financial standings.
Q: How do investors use this trend?
A: Investors analyze the AAA10Y spread to assess market risk, make investment decisions, and gauge potential economic shifts.
Q: What limitations exist in this metric?
A: The trend focuses on top-rated corporate bonds and may not fully represent broader market conditions or smaller corporate entities.
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Citation
U.S. Federal Reserve, Moody's Seasoned Aaa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity [AAA10Y], retrieved from FRED.
Last Checked: 8/1/2025