Barron's Confidence Index

Barron's confidence index

Index measuring the ratio of the average yield on 10 top-grade bonds to the average yield on 10 intermediate-grade bonds. The discrepancy between high-rated top-grade bonds and low-rated bond yields establishes a measure that is indicative of investor confidence.

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Barron's Confidence Index

A confidence indicator calculated by dividing the yield on intermediate-grade bonds into the yield on high-grade bonds. A rising ratio indicates investors are demanding a lower premium in yield for increased risk, thus expressing confidence in the economy and the securities markets. A rising index is considered bullish for stocks; a falling index is considered bearish for stocks. Compare Standard & Poor's Confidence Indicator.