Moody's Seasoned Baa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity
This dataset tracks moody's seasoned baa corporate bond yield relative to yield on 10-year treasury constant maturity over time.
Latest Value
1.72
Year-over-Year Change
-0.58%
Date Range
1/2/1986 - 8/5/2025
Summary
This economic indicator tracks the yield spread between Moody's Baa-rated corporate bonds and 10-Year Treasury securities, providing insight into corporate credit risk and market sentiment. The spread reflects the additional risk premium investors demand for holding corporate debt compared to risk-free government securities.
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 BAA10Y trend measures the difference in yields between medium-quality corporate bonds and long-term Treasury bonds, serving as a key indicator of credit market conditions and economic health. Economists and investors use this spread to assess perceived corporate credit risk and overall economic stability.
Methodology
The data is calculated by subtracting the 10-Year Treasury Constant Maturity yield from the Moody's Seasoned Baa Corporate Bond yield, typically reported on a monthly basis.
Historical Context
This metric is crucial for central bank policymakers, investment strategists, and economic researchers in evaluating credit market conditions and potential economic shifts.
Key Facts
- Wider spreads typically indicate higher perceived economic risk
- Serves as a leading indicator of economic stress and market sentiment
- Reflects the premium investors require for holding corporate debt
FAQs
Q: What does a widening BAA10Y spread indicate?
A: A widening spread suggests increased perceived risk in corporate lending and potential economic uncertainty. Investors are demanding higher returns to compensate for perceived higher credit risk.
Q: How do changes in this spread impact investment decisions?
A: Investors use this spread to assess relative value between corporate and government bonds, potentially adjusting portfolio allocations based on perceived risk and potential returns.
Q: How is the BAA10Y calculated?
A: It is calculated by subtracting the 10-Year Treasury yield from the Moody's Baa Corporate Bond yield, representing the additional risk premium for corporate debt.
Q: What economic conditions typically cause spread changes?
A: Economic factors like monetary policy, inflation expectations, corporate earnings, and overall market sentiment can significantly impact the BAA10Y spread.
Q: How frequently is this data updated?
A: The BAA10Y is typically updated monthly by the Federal Reserve, providing a consistent snapshot of corporate credit market conditions.
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Similar BAA10Y Trends
Citation
U.S. Federal Reserve, Moody's Seasoned Baa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity [BAA10Y], retrieved from FRED.
Last Checked: 8/1/2025