Moody's Seasoned Aaa Corporate Bond Yield
AAA • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.45
Year-over-Year Change
6.45%
Date Range
4/1/1942 - 7/1/2025
Summary
The Moody's Seasoned Aaa Corporate Bond Yield represents the average yield of top-rated corporate bonds with a long-term maturity. This benchmark provides critical insight into corporate borrowing costs and overall market sentiment for high-quality debt instruments.
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 the most creditworthy corporate bonds, typically issued by companies with exceptional financial stability and minimal default risk. Economists and investors closely track this metric as a key indicator of corporate financial health and broader economic conditions.
Methodology
The yield is calculated by Moody's Investors Service by averaging the yields of top-rated (Aaa) corporate bonds with maturities typically over 20 years.
Historical Context
Central banks, financial analysts, and policymakers use this yield as a critical reference point for assessing corporate credit markets and potential economic trends.
Key Facts
- Represents the highest-rated corporate bonds with minimal default risk
- Serves as a benchmark for corporate borrowing costs
- Reflects broader economic and market sentiment
FAQs
Q: What does a Aaa bond rating mean?
A: A Aaa rating indicates the highest quality corporate bonds with extremely low default risk. These bonds are issued by companies with exceptional financial strength and stability.
Q: How do AAA bond yields relate to economic conditions?
A: AAA bond yields typically reflect broader economic trends, with lower yields suggesting economic uncertainty and higher yields indicating economic confidence and growth expectations.
Q: How often is this yield updated?
A: The Moody's Seasoned Aaa Corporate Bond Yield is typically updated daily, providing real-time insights into corporate bond market conditions.
Q: Why do investors care about AAA corporate bond yields?
A: Investors use these yields to assess relative investment attractiveness, compare returns across different asset classes, and gauge overall market risk and economic health.
Q: What limitations exist in interpreting this yield?
A: While informative, the yield represents only top-rated corporate bonds and may not fully capture the complexity of broader credit markets or economic conditions.
Related Trends
ICE BofA AA US Corporate Index Semi-Annual Yield to Worst
BAMLC0A2CAASYTW
ICE BofA 7-10 Year US Corporate Index Semi-Annual Yield to Worst
BAMLC4A0C710YSYTW
59-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB59YR
10-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB10YR
31.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB31Y6M
ICE BofA Asia US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
BAMLEMALLCRPIASIAUSOAS
Citation
U.S. Federal Reserve, Moody's Seasoned Aaa Corporate Bond Yield [AAA], retrieved from FRED.
Last Checked: 8/1/2025