Monthly
This dataset tracks monthly over time.
Latest Value
6.10
Year-over-Year Change
4.45%
Date Range
1/1/1919 - 7/1/2025
Summary
The BAA Monthly series tracks the Moody's Baa corporate bond yield, which represents the interest rate for medium to lower-quality corporate bonds. This metric is a critical indicator of borrowing costs and credit market conditions for businesses with moderate credit ratings.
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 BAA yield reflects the cost of debt for corporations with moderate credit quality, serving as a key benchmark for corporate borrowing rates. Economists and investors closely monitor this trend to assess credit market health, corporate financial risk, and potential economic stress.
Methodology
The data is collected by Moody's Investors Service through comprehensive analysis of corporate bond market transactions and credit ratings.
Historical Context
This trend is used by central banks, financial analysts, and policymakers to evaluate credit market conditions and potential economic shifts.
Key Facts
- Represents yields for Baa-rated corporate bonds
- Indicates corporate borrowing costs and credit market conditions
- Fluctuates with economic sentiment and monetary policy
FAQs
Q: What does the BAA yield indicate?
A: The BAA yield shows the interest rate for medium to lower-quality corporate bonds, reflecting borrowing costs for companies with moderate credit ratings.
Q: How do changes in the BAA yield impact businesses?
A: Higher BAA yields suggest increased borrowing costs and potential financial stress, while lower yields indicate more favorable lending conditions.
Q: How is the BAA yield calculated?
A: Moody's calculates the BAA yield by analyzing corporate bond market transactions and assessing the interest rates for bonds with specific credit ratings.
Q: Why do investors track the BAA yield?
A: Investors use the BAA yield to assess credit market health, evaluate corporate financial risk, and make informed investment decisions.
Q: How often is the BAA yield updated?
A: The BAA yield is typically updated monthly, providing a current snapshot of corporate borrowing conditions and credit market trends.
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Citation
U.S. Federal Reserve, Monthly [BAA], retrieved from FRED.
Last Checked: 8/1/2025