Series 50: Benchmark Yield Curves

Benchmark Yield Curves

Market participants may also find benchmark yield curves publicly available to assist in valuing a bond. A benchmark yield curve is a graph of the estimated current yield of bonds of similar credit quality across the range of possible maturities. Usually yield curves represent estimates of yields for AAA bonds. The difference between the benchmark yield and the yield of a particular issue is often called the yield spread or the risk premium. This is often represented in basis points.

The Municipal Market Data (MMD) AAA Curve is a set of hypothetical AAA