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

HQMCB86Y6M • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

6.32

Year-over-Year Change

11.27%

Date Range

1/1/1984 - 7/1/2025

Summary

The 86.5-Year High Quality Market (HQM) Corporate Bond Spot Rate represents a critical long-term benchmark for corporate bond yields across high-quality debt instruments. This metric provides crucial insights into corporate borrowing costs and broader market expectations for long-term interest rates.

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 with extended maturities. 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 analyzes high-quality corporate bond yields across multiple maturity periods and market conditions.

Historical Context

This rate is instrumental in financial modeling, investment strategy development, and macroeconomic policy assessment for long-term economic planning.

Key Facts

  • Represents a comprehensive view of high-quality corporate bond yields
  • Provides insights into long-term corporate borrowing costs
  • Used by economists and investors for strategic financial analysis

FAQs

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

A: The rate specifically tracks bonds from corporations with strong credit ratings and financial stability. It excludes lower-quality or high-risk corporate debt instruments.

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 an 86.5-year spot rate significant?

A: The extended time horizon provides a unique perspective on very long-term market expectations and potential economic trends beyond typical short and medium-term analyses.

Q: How do investors use this rate?

A: Investors use this rate to compare potential returns, assess corporate bond valuations, and make informed long-term investment decisions.

Q: What are the limitations of this rate?

A: The rate represents a theoretical construct and may not perfectly reflect actual market transactions or individual corporate bond performance.

Related Trends

Citation

U.S. Federal Reserve, 86.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB86Y6M], retrieved from FRED.

Last Checked: 8/1/2025