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
As yields on Treasury securities have inched lower in the past six months, yields on Baa bonds have declined more quickly. The Baa average yield decreased 6 basis points in October even though the 10-year Treasury yield rose 2 basis points. The narrowing spread suggests investors are less worried about default risk.

2-year Treasury Yield & Spread to Fed Funds   •   10-year Treasury Yield & Spread 10-year less 2-year

Yield Spread: Aaa Corporate vs. 10-year Treasury   •   Yield Spread: Baa Corporate vs. 10-year Treasury

Yield Spread: Bond Buyer vs. 10-year Treasury