In contrast to stocks, bonds give the investor the guarantee that if he buys a bond for example for 100 at par value, the investor will get back when the bond reaches it\'s maturity. In addition the investor gets the interest coupons of the bond. Below you can find the current yield curve (yields for different holding periods) of major government bonds. Government bonds are usually regarded as bonds with the least amount of risk, in contrast to corporate bonds. Further below you will find the spread of corporate bonds (with a BBB rating, still investment grade) and high yield rated (BB or worse, non-investment grade or junk-grade). You can add the spread to the yields of the governments bonds to get a rough estimation what yields you could find on the market, without considering the default rate. The default rate is especially significant in non-investment grade bonds.
This data represents the Option-Adjusted Spread (OAS) of the ICE BofA BBB US Corporate Index, a subset of the ICE BofA US Corporate Master Index tracking the performance of US dollar denominated investment grade rated corporate debt publicly issued in the US domestic market. This subset includes all securities with a given investment grade rating BBB.
The ICE BofA Option-Adjusted Spreads (OASs) are the calculated spreads between a computed OAS index of all bonds in a given rating category and a spot Treasury curve. An OAS index is constructed using each constituent bond's OAS, weighted by market capitalization. The ICE BofA High Yield Master II OAS uses an index of bonds that are below investment grade (those rated BB or below).
Regarding the US Central Bank's Federal Funds Target Rate, see also FED Watch Tool by the CME for the probability of future interest rate changes.