ICE BofA 1-3 Year US Corporate Index Effective Yield
This dataset tracks ice bofa 1-3 year us corporate index effective yield over time.
Latest Value
4.34
Year-over-Year Change
-2.91%
Date Range
12/31/1996 - 8/6/2025
Summary
The ICE BofA 1-3 Year US Corporate Index Effective Yield tracks the average yield of investment-grade corporate bonds with 1-3 year maturities. This metric provides critical insight into short-term 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 index represents the weighted average effective yield of US dollar-denominated investment-grade corporate debt with remaining terms to maturity between one and three years. Economists and investors use this metric to assess corporate credit market health and potential shifts in borrowing costs.
Methodology
The yield is calculated by Bank of America using a market-value weighted methodology that captures representative corporate bond pricing across different credit ratings and sectors.
Historical Context
Central banks and financial analysts use this index to understand corporate credit conditions, monetary policy transmission, and potential economic stress signals.
Key Facts
- Covers investment-grade corporate bonds with 1-3 year maturities
- Provides a market-weighted average effective yield
- Reflects short-term corporate borrowing costs
FAQs
Q: What does this index indicate about corporate borrowing?
A: The index shows the average yield corporations must pay to borrow money for short-term periods. Higher yields suggest more expensive borrowing conditions.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in corporate bond market conditions.
Q: Why do investors track this yield index?
A: Investors use this index to assess credit market health, potential economic risks, and compare corporate borrowing costs across different time periods.
Q: How does this index relate to monetary policy?
A: The index can signal the effectiveness of central bank policies and provide insights into overall credit market liquidity and corporate financial conditions.
Q: What are the limitations of this index?
A: The index only covers investment-grade bonds and does not include high-yield or speculative-grade corporate debt, which might have different yield characteristics.
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Citation
U.S. Federal Reserve, ICE BofA 1-3 Year US Corporate Index Effective Yield [BAMLC1A0C13YEY], retrieved from FRED.
Last Checked: 8/1/2025