Long term perspective

Note that the spread between the Baa Corporate and the 10-year Treasury note is wider than the spread between the Aaa corporate bond and the Treasury security. This reflects market views of credit conditions among these lower rated corporate bonds.

Short term perspective

Yields on Baa rated corporate bonds slipped 8 basis points in November while the 10-year Treasury note yield declined 38 basis points.  When yields on lower rated bonds do not fall as much as yields on higher rated bonds or rise more during periods of rising rates, it suggests that default risk has risen (usually this happens during periods of economic slowing or recession). Default risk has risen lately.