27.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB27Y6M • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
6.02
Year-over-Year Change
9.45%
Date Range
1/1/1984 - 6/1/2025
Summary
The 27.5-Year High Quality Market (HQM) Corporate Bond Spot Rate represents the yield for high-quality corporate bonds with a specific long-term maturity. This metric provides critical insight into corporate borrowing costs and broader market expectations for long-term debt instruments.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The HQM Corporate Bond Spot Rate is a sophisticated financial indicator that tracks the theoretical yield curve for high-quality corporate bonds. Economists and financial analysts use this rate to assess corporate credit markets, investment opportunities, and potential economic trends.
Methodology
The rate is calculated by the Federal Reserve using a complex methodology that considers multiple high-quality corporate bond yields and adjusts for current market conditions.
Historical Context
This rate is crucial for evaluating corporate financing costs, investment strategies, and macroeconomic risk assessments across different economic cycles.
Key Facts
- Represents yields for high-quality corporate bonds with a 27.5-year maturity
- Provides insight into long-term corporate borrowing costs
- Used by investors and economists to assess market conditions
FAQs
Q: What does the HQM Corporate Bond Spot Rate indicate?
A: The rate indicates the theoretical yield for high-quality corporate bonds at a specific long-term maturity. It reflects current market expectations for corporate debt pricing.
Q: How often is this rate updated?
A: The Federal Reserve typically updates this rate periodically, reflecting current market conditions and corporate bond performance.
Q: Why is the 27.5-year maturity significant?
A: The 27.5-year maturity provides a long-term perspective on corporate borrowing costs and market expectations for extended investment horizons.
Q: How do investors use this rate?
A: Investors use this rate to compare potential returns, assess corporate credit risk, and make informed decisions about long-term fixed-income investments.
Q: What limitations exist in interpreting this rate?
A: The rate represents a theoretical yield and may not perfectly reflect actual market transactions. It should be considered alongside other economic indicators.
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Citation
U.S. Federal Reserve, 27.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB27Y6M], retrieved from FRED.
Last Checked: 8/1/2025