Moody's Seasoned Baa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity

Monthly

BAA10YM • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.71

Year-over-Year Change

7.55%

Date Range

4/1/1953 - 7/1/2025

Summary

The BAA10YM represents the monthly Moody's Seasoned Baa Corporate Bond Yield, tracking the average yield of medium to lower-rated corporate bonds. This metric provides critical insight into corporate borrowing costs and overall credit market conditions.

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

This yield reflects the interest rates for Baa-rated corporate bonds with a 10-year maturity, serving as a key indicator of corporate credit risk and market sentiment. Economists and investors use this trend to assess corporate financial health and broader economic risk perceptions.

Methodology

The yield is calculated by averaging the monthly interest rates for Baa-rated corporate bonds with approximately 10 years to maturity, as tracked by Moody's Investors Service.

Historical Context

Financial analysts and policymakers use this trend to evaluate credit market conditions, assess corporate borrowing costs, and gauge potential economic risks.

Key Facts

  • Represents medium to lower-rated corporate bond yields
  • Provides insight into corporate borrowing costs
  • Reflects broader market risk perceptions

FAQs

Q: What does the BAA10YM indicate?

A: It shows the average yield for Baa-rated corporate bonds with 10-year maturities, reflecting corporate borrowing costs and credit market conditions.

Q: Why are corporate bond yields important?

A: They provide insights into corporate financial health, credit risk, and overall economic market sentiment.

Q: How is the BAA10YM calculated?

A: Moody's calculates this by averaging the monthly yields of Baa-rated corporate bonds with approximately 10 years to maturity.

Q: How do investors use this metric?

A: Investors analyze this yield to assess corporate credit risk, make investment decisions, and understand broader economic trends.

Q: How often is this data updated?

A: The BAA10YM is typically updated monthly, providing current insights into corporate bond market conditions.

Related Trends

Citation

U.S. Federal Reserve, Monthly [BAA10YM], retrieved from FRED.

Last Checked: 8/1/2025