5-Year High Quality Market (HQM) Corporate Bond Par Yield

HQMCB5YRP • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.50

Year-over-Year Change

-5.46%

Date Range

1/1/1984 - 7/1/2025

Summary

The 5-Year High Quality Market (HQM) Corporate Bond Par Yield represents the average yield of high-quality corporate bonds with a 5-year maturity. This metric provides critical insight 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 Par Yield is a benchmark that reflects the interest rates corporations must pay to borrow funds in the bond market. Economists and investors use this indicator to assess corporate credit market health and potential economic trends.

Methodology

The yield is calculated by the Federal Reserve using a comprehensive survey of high-quality corporate bond transactions and market pricing data.

Historical Context

This trend is used by policymakers, investors, and financial analysts to evaluate corporate credit markets, assess economic conditions, and make strategic investment and monetary policy decisions.

Key Facts

  • Represents 5-year corporate bond yields for high-quality issuers
  • Provides insight into corporate borrowing costs
  • Reflects broader economic and credit market conditions

FAQs

Q: What makes a corporate bond 'high quality'?

A: High-quality corporate bonds are issued by financially stable companies with strong credit ratings, typically from AAA to BBB grade.

Q: How do changes in this yield impact investors?

A: Rising yields indicate higher borrowing costs for corporations, which can affect stock prices, investment strategies, and overall market sentiment.

Q: How frequently is this data updated?

A: The HQM Corporate Bond Par Yield is typically updated on a monthly basis by the Federal Reserve.

Q: Why do economists track this metric?

A: This yield helps economists assess credit market conditions, potential economic shifts, and corporate financial health.

Q: What are the limitations of this data?

A: The metric represents a snapshot of high-quality corporate bonds and may not fully capture the entire spectrum of corporate credit markets.

Related Trends

Citation

U.S. Federal Reserve, 5-Year High Quality Market (HQM) Corporate Bond Par Yield [HQMCB5YRP], retrieved from FRED.

Last Checked: 8/1/2025