The chart below shows annual yields for Treasuries, investment-grade (AAA) municipal bonds, and investment-grade (AAA) corporate bonds. “Investment-grade” means the company that issued the bond is in good financial shape.
The green bars show the average yield for each bond in 2008. The blue bars show their current yields.
All three assets are widely thought of as safe. They’re very popular with retirees and other income investors. Right now, each bond is yielding half of what it paid seven years ago.
Since 2008, the yield on 10-year Treasuries has declined 44%. The yield on 10-year corporate bonds has declined 50%. And the yield on municipal bonds has declined 45%.