The difference, also known as the spread, between the yield of corporate bonds and the yield of government bonds can be used to gauge the health of the stock market. We chart here the spread between the yield of Baa-rated U.S. corporate bonds and the yield of U.S. 10-year Treasury bonds.

How to interpret the spread? An increasing spread makes it harder for corporations to borrow and invest, indicates higher perceived risks for corporations, and signals a slowing economy. An increasing spread also implies that more capital moves away from corporations to the safety of government bonds.

The data we use here are from U.S. Federal Reserve Board. The chart is updated every day that is a business day in the U.S., at 4:20 p.m. Eastern Time when previous day's data are published by the Federal Reserve Board.


 
  Spread Between Baa-rated U.S. Corporate Bonds and U.S. 10-year Treasury Bonds
 
  Last Data: 2013-05-16
 
 
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