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Corporate BBB Bond Yields:

bbb bond yields

Released Daily
Released by Moody's Investment Service

The Corporate BBB bond yield is an important economic indicator for several reasons.  Our current FOMC chairman, Alan Greenspan has taken to watching the yields on these bonds.  His reasoning and the usefulness of this indicator is that most firms are forced to borrow at this level.  If the majority of US firms are forced to borrow at this level changes in this rate can effect the economy.   For instance, should there be a scare and a flight to quality, the interest rate at which these firms would have to borrow would rise significantly.  This would make it more expensive for firms to acquire capital, stifling investment and perhaps even productivity.  This could also lead to inflation as firms are forced to pay higher interest rates on their loans.

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