Bond Yields in the Market (as of December 30, 2016)
The following chart provides median yields for standard US coupon bonds with 6-8 year maturities and outstanding issued value of $50 million or greater. The market’s highest rated bonds trade at a 40-50 basis point spread to a hypothetical 6-8 year Treasury bond. Junk bonds, starting at a Moody’s rating of Ba1 or lower, start at a yield of 4.9%. High-yield bonds are at the lowest spread differential relative to Treasuries since the summer of 2014.