ICE BofA 5-7 Year US Corporate Index Effective Yield
This dataset tracks ice bofa 5-7 year us corporate index effective yield over time.
Latest Value
4.75
Year-over-Year Change
-2.86%
Date Range
12/31/1996 - 8/6/2025
Summary
The ICE BofA 5-7 Year US Corporate Index Effective Yield represents the average yield of investment-grade corporate bonds with 5-7 year maturities. This metric provides critical insight into corporate borrowing costs and overall market sentiment for medium-term corporate debt.
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
This index tracks the effective yield for a specific segment of the US corporate bond market, reflecting the average interest rate corporations must pay to borrow funds. Economists and investors use this indicator to assess corporate credit conditions, risk perception, and potential economic trends.
Methodology
The yield is calculated by Bank of America using a weighted average of effective yields for investment-grade corporate bonds in the 5-7 year maturity range.
Historical Context
Policymakers and financial analysts use this index to understand corporate financing conditions, monetary policy implications, and potential economic investment signals.
Key Facts
- Covers investment-grade corporate bonds with 5-7 year maturities
- Reflects current corporate borrowing costs and market sentiment
- Provides insights into medium-term corporate credit conditions
FAQs
Q: What does this yield index indicate about the corporate bond market?
A: The index shows the average interest rate corporations pay for medium-term debt, reflecting market risk perception and borrowing costs.
Q: How do changes in this yield impact investors?
A: Rising yields suggest higher borrowing costs and potentially increased market risk, while declining yields might indicate more favorable lending conditions.
Q: What makes the 5-7 year maturity range significant?
A: This range represents a medium-term investment horizon that balances short-term volatility with longer-term economic outlook.
Q: How do policymakers use this index?
A: Central banks and economic policymakers analyze this yield to understand corporate credit markets and potential economic trends.
Q: How frequently is this index updated?
A: The index is typically updated daily, reflecting real-time changes in corporate bond market conditions.
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Citation
U.S. Federal Reserve, ICE BofA 5-7 Year US Corporate Index Effective Yield [BAMLC3A0C57YEY], retrieved from FRED.
Last Checked: 8/1/2025