5.5-Year High Quality Market (HQM) Corporate Bond Spot Rate

HQMCB5Y6M • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.58

Year-over-Year Change

-4.18%

Date Range

1/1/1984 - 7/1/2025

Summary

The 5.5-Year High Quality Market (HQM) Corporate Bond Spot Rate represents the yield of high-quality corporate bonds with a specific maturity duration. This metric provides critical insights into corporate borrowing costs and overall market credit conditions.

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 benchmark that reflects the current interest rates for investment-grade corporate debt at a precise 5.5-year maturity point. Economists and financial analysts use this rate to assess corporate credit markets, investment attractiveness, and potential economic trends.

Methodology

The rate is calculated by the Federal Reserve using a comprehensive methodology that evaluates high-quality corporate bond yields across multiple issuers and credit ratings.

Historical Context

This spot rate is utilized by policymakers, investors, and financial institutions to gauge corporate credit market health and make informed investment and lending decisions.

Key Facts

  • Represents high-quality corporate bond yields at 5.5-year maturity
  • Provides insights into corporate borrowing costs
  • Calculated by the Federal Reserve using comprehensive market data

FAQs

Q: What makes this a 'High Quality Market' rate?

A: The HQM rate specifically tracks investment-grade corporate bonds with strong credit ratings, representing lower-risk debt instruments.

Q: How often is this rate updated?

A: The rate is typically updated regularly by the Federal Reserve, reflecting current market conditions and corporate bond yields.

Q: Why is the 5.5-year duration significant?

A: The 5.5-year duration provides a specific, standardized point for comparing corporate bond yields across different market periods.

Q: How do investors use this rate?

A: Investors use this rate to assess corporate bond attractiveness, compare potential returns, and make informed fixed-income investment decisions.

Q: What are the limitations of this rate?

A: The rate represents a specific market segment and may not fully capture the entire corporate bond market's complexity or individual bond variations.

Related Trends

Citation

U.S. Federal Reserve, 5.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB5Y6M], retrieved from FRED.

Last Checked: 8/1/2025