Long Term Perspective
Note that the spread between the Baa Corporate and the 10-year Treasury note is wider than the spread between the AAA corporate bond and the Treasury security. This reflects market views of credit conditions among these lower rated corporate bonds.

Short Term Perspective
Yields on Baa corporate bonds are down from their peak reached in May 2000, but are hardly unchanged despite rapid declines in the Treasury market. The less optimistic outlook for the economy tends to hurt lower-rated bonds since the risk of default is heightened with reduction in corporate revenues.

2-year Treasury Yield & Spread to Fed Funds   •   30-year Treasury Yield & Spread 30-year less 2-year

Yield Spread: AAA Corporate vs. 30-year Treasury   •   Yield Spread: Baa Corporate vs. 30-year Treasury

Yield Spread: Bond Buyer vs. 30-year Treasury