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FAS87 ASC715 discount rates and Moody's Rates


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Data as of March 31, 2020 (Tuesday)                    First month-end after beginning of Coved-19 pandemic/isolation
Moody's Daily Long-term Corporate Bond Yield Averages

        Utilities  Industrial  Corporate
Aaa  NA  2.73  2.73
Aa  3.35  2.82  3.09
A  3.69  3.37  3.53
Baa  4.39  4.86  4.63
Avg  3.81  3.45  3.63

Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.34
Medium-Term (5-10 yrs)  0.53
Long-Term (10+ yrs)  1.2

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are 10-40 points higher.  (2) Comparing the Avg rates to 12 months prior, current rates are about 25-30 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 5 weeks later...

Data as of April 30, 2020 (Thursday)             second month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 
 
    Utilities    Industrial    Corporate
Aaa  NA  2.38  2.38
Aa  2.71  2.43  2.57
A  2.95  2.97  2.96
Baa  3.50  4.24  3.87
Avg  3.05  3.01  3.03
  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.28
Medium-Term (5-10 yrs)  0.47 
Long-Term (10+ yrs)  1.14
Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are 30-35 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 110 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 1 month later...

Data as of May 29, 2020 (Friday)             third month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 

   Utilities    Industrial    Corporate
Aaa  NA  2.41  2.41
Aa  2.83  2.47  2.65
A  3.11  3.03  3.07
Baa  3.47  4.05  3.76
Avg  3.14  2.99  3.07
  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.23
Medium-Term (5-10 yrs)  0.46 
Long-Term (10+ yrs)  1.25
 

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are 150-160 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 110-120 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 5 weeks later...

Data as of June 30, 2020 (Tuesday)             fourht month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 

   Utilities    Industrial    Corporate
Aaa  NA  2.34  2.34
Aa  2.77  2.42  2.60
A  3.00  2.90  2.95
Baa  3.38  3.80  3.59
Avg  3.05  2.87  3.96
  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.21
Medium-Term (5-10 yrs)  0.45 
Long-Term (10+ yrs)  1.25
 

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are about 45 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 75 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 1 month later...

Data as of July 31, 2020 (Friday)             fifth month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 

   Utilities    Industrial    Corporate
Aaa  NA  2.03  2.03
Aa  2.30  2.05  2.18
A  2.56  2.48  2.52
Baa  2.93  3.36  3.15

Avg  2.60  2.48  2.54

  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.14
Medium-Term (5-10 yrs)  0.35 
Long-Term (10+ yrs)  1.04

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are about 60 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 110 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 5 weeks later...

Data as of August 31, 2020 (Monday)             sixth month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 

   Utilities    Industrial    Corporate
Aaa  NA  2.42  2.42
Aa  2.63  2.40  2.52
A  2.86  2.76  2.81
Baa  3.18  3.59  3.39

Avg  2.89  2.79  2.84

  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.22
Medium-Term (5-10 yrs)  0.46 
Long-Term (10+ yrs)  1.28

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are about 15-20 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 40 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 5 weeks later...

Data as of Sept 30, 2020 (Monday)             seventh month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 

   Utilities    Industrial    Corporate
Aaa  NA  2.32  2.32
Aa  2.68  2.36  2.52
A  2.91  2.79  2.85
Baa  3.25  3.62  3.44

Avg  2.95  2.77  2.86

  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.21
Medium-Term (5-10 yrs)  0.44 
Long-Term (10+ yrs)  1.26

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are about 65-80 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 50 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 1 month later...

Data as of October 31, 2020 (Friday)                    Eighth month-end after beginning of Coved-19 pandemic/isolation
Moody's Daily Long-term Corporate Bond Yield Averages

        Utilities  Industrial  Corporate
Aaa  NA  2.39  2.39
Aa  2.76  2.43 2.60
A  2.99  2.86  2.93
Baa  3.35  3.62  3.49
Avg  3.03  2.83  2.93

Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.29
Medium-Term (5-10 yrs)  0.59
Long-Term (10+ yrs)  1.43

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are very close, only 5-10 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 30-45 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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Advance Notice:  After posting the rates for the month-end December 2020, I will no longer be adding to this list.  If someone else is willing to take on this task, I'll be glad to help get you started.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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Thank you for your dedication David. Hopefully someone will pick up the torch.  

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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  • 3 weeks later...

Data as of November 30, 2020 (Monday)             Ninth month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 

   Utilities    Industrial    Corporate
Aaa  NA  2.20  2.20
Aa  2.51  2.20  2.36
A  2.72  2.60  2.66
Baa  3.01  3.25  3.13
Avg  2.75  2.56  2.66
  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.27
Medium-Term (5-10 yrs)  0.56
Long-Term (10+ yrs)  1.37
 

Observation:  (1) Comparing the Avg rates to 6 months prior, current rates are about 40 points lower.  (2) Comparing the Avg rates to 12 months prior, current rates are about 70 points lower.  

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 1 month later...

Data as of December 31, 2020 (Thursday)             Tenth month-end after beginning of Coved-19 pandemic/isolation

Moody's Daily Long-term Corporate Bond Yield Averages 

   Utilities    Industrial    Corporate
Aaa  NA  2.23  2.23
Aa  2.54  2.29  2.42
A  2.74  2.60  2.67
Baa  3.00  3.21  3.11
Avg  2.76  2.58  2.67
  
Moody's Daily Treasury Yield Averages
Short-Term (3-5 yrs)  0.25
Medium-Term (5-10 yrs)  0.58
Long-Term (10+ yrs)  1.45

For those wondering about year-end volatility, I also looked at the same values for December 29 and December 30.  The values differed by no more than 3-4 basis points.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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As stated above, this is my last entry for this data.  If someone else is willing to add to the list each month, I'll be glad to help you get started. 

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 4 weeks later...

Hi David,

Thanks for the many years of doing this!  I don't mind doing it a while- have a reminder on my phone for the start of every month.  Not sure about the format, hope it is still readable.

Data as of January 29, 2021 (Friday)  

     
       
Moody's Daily Long-term Corporate Bond Yield Averages      
  Utilities Industrial Corporate
Aaa NA 2.51 2.51
Aa 2.75 2.53 2.64
A 2.93 2.80 2.87
Baa 3.23 3.33 3.28
Avg 2.97 2.79 2.88
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.29  
Medium-Term (5-10 yrs)   0.70  
Long-Term (10+ yrs)   1.67
  • Thanks 1
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  • 1 month later...

Data as of February 26, 2021 (Friday)        

Moody's Daily Long-term Corporate Bond Yield Averages

 

 

   
  Utilities Industrial Corporate
Aaa NA 2.86 2.86
Aa 3.07 2.91 2.99
A 3.23 3.13 3.18
Baa 3.52 3.59 3.56
Avg 3.27 3.12 3.20
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.58  
Medium-Term (5-10 yrs)   1.11  
Long-Term (10+ yrs)   2.07  
   
       
       
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  • 5 weeks later...
Data as of March 31, 2021 (Wednesday)
     
       
Moody's Daily Long-term Corporate Bond Yield Averages      
  Utilities Industrial Corporate
Aaa NA 3.04 3.04
Aa 3.31 3.10 3.21
A 3.49 3.32 3.41
Baa 3.75 3.78 3.77
Avg 3.52 3.31 3.42
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.66  
Medium-Term (5-10 yrs)   1.32  
Long-Term (10+ yrs)   2.31  
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  • 1 month later...
Data as of April 29, 2021 (Thursday)    
       
Moody's Daily Long-term Corporate Bond Yield Averages      
  Utilities Industrial Corporate
Aaa NA 2.92 2.92
Aa 3.14 2.95 3.05
A 3.31 3.20 3.26
Baa 3.58 3.66 3.62
Avg 3.34 3.18 3.26
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.59  
Medium-Term (5-10 yrs)   1.22  
Long-Term (10+ yrs)   2.19  
     

 

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  • 1 month later...
Data as of May 28, 2021 (Friday)
       
Moody's Daily Long-term Corporate Bond Yield Averages      
  Utilities Industrial Corporate
Aaa NA 2.90 2.90
Aa 3.13 2.90 3.02
A 3.28 3.16 3.22
Baa 3.53 3.60 3.57
Avg 3.31 3.14 3.23
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.52  
Medium-Term (5-10 yrs)   1.15  
Long-Term (10+ yrs)   2.17  
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  • 1 month later...
Data as of June 30, 2021    
       
Moody's Daily Long-term Corporate Bond Yield Averages      
  Utilities Industrial Corporate
Aaa NA 2.63 2.63
Aa 2.91 2.69 2.80
A 3.05 2.91 2.98
Baa 3.29 3.35 3.32
Avg 3.08 2.90 2.99
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.62  
Medium-Term (5-10 yrs)   1.11  
Long-Term (10+ yrs)   1.97  
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  • 1 month later...

Data as of Friday, July 30, 2021

Moody's Daily Long-term Corporate Bond Yield Averages      
  Utilities Industrial Corporate
Aaa NA 2.51 2.51
Aa 2.75 2.58 2.67
A 2.90 2.79 2.85
Baa 3.15 3.23 3.19
Avg 2.93 2.78 2.86
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.47  
Medium-Term (5-10 yrs)   0.90  
Long-Term (10+ yrs)   1.79  
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  • 5 weeks later...

Data as of Tuesday, August 31, 2021

Moody's Daily Long-term Corporate Bond Yield Averages      
  Utilities Industrial Corporate
Aaa NA 2.54 2.54
Aa 2.83 2.63 2.73
A 2.96 2.82 2.89
Baa 3.20 3.28 3.24
Avg 3.00 2.82 2.91
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.56  
Medium-Term (5-10 yrs)   0.99  
Long-Term (10+ yrs)   1.81

 

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  • 1 month later...

Data as of Thursday, September 30, 2021

Moody's Daily Long-term Corporate Bond Yield Averages

     
  Utilities Industrial Corporate
Aaa NA 2.70 2.70
Aa 3.01 2.76 2.89
A 3.11 2.97 3.04
Baa 3.33 3.40 3.37
Avg 3.15 2.96 3.06
       
Moody's Daily Treasury Yield Averages      
Short-Term (3-5 yrs)   0.72  
Medium-Term (5-10 yrs)   1.21  
Long-Term (10+ yrs)   1.99  
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