Available Credit 2013-06-01 to 2013-06-30

Coverage Start: 
Saturday, June 1, 2013
Coverage End: 
Sunday, June 30, 2013

Available credit – or the spread between yields on 10-year Treasury bonds and AAA-rated bonds –increased 0.01 percentage points from the previous month in June. This was the result of a 0.37 percentage point increase in the yield of 10-year Treasuries and a 0.38 point increase in that of AAA-rated bonds. Since March, the spread has wavered between 1.97% and 1.96%, bringing the four-month average to 1.97% this month. After a meeting of the Federal Open Market Committee (FOMC) mid-month, Ben Bernanke, chairman of the Fed, announced the federal bond-buying program – also known as quantitative easing – would be coming to close in the second half of the year given signs of a strong economy. Specifically, a drop in the U.S. unemployment rate down to 6.5% is one measure the Fed is looking for. After this announcement, bond yields increased throughout the second half of the month to compensate for expected lowered demand in the future. Stock markets, which had been steadily climbing, also suffered immediately following Bernanke’s statement, falling between 1 to 2 percentage points.