Available Credit 2013-08-01 to 2013-08-31

Economic Indicator: 
Available Credit
Release Date: 
Tue, 09/03/2013
Coverage Start: 
Thu, 08/01/2013
Coverage End: 
Sat, 08/31/2013

Current: 1.80
Previous: 1.76

Available credit in August – or the spread between yields on 10-year Treasury bonds and AAA-rated bonds – increased 0.04 percentage points from the previous month. This was the result of a 0.2 percentage point increase in the yield of AAA-rated bonds and a 0.16 point increase in that of 10-year Treasuries. Additionally, the four-month average fell 0.05 percentage points to 1.87%. An increase in the credit spread indicates a decrease in investors’ appetite for risk. Within the last few months, yields on Treasuries have gradually risen to accommodate investor fears of the Fed scaling back their bond-buying program – also known as quantitative easing. This continued through August as quantitative easing is predicted to come to a close in late 2013 or early 2014.