6.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
This dataset tracks 6.5-year high quality market (hqm) corporate bond spot rate over time.
Latest Value
4.72
Year-over-Year Change
-2.68%
Date Range
1/1/1984 - 7/1/2025
Summary
The 6.5-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks the yield of high-quality corporate bonds with a specific 6.5-year maturity. This metric provides critical insights into corporate borrowing costs and market expectations for 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 represents a benchmark for corporate debt pricing, reflecting the current market's assessment of credit risk and long-term economic conditions. Economists and financial analysts use this rate to understand corporate financing dynamics and broader economic trends.
Methodology
The rate is calculated by the Federal Reserve using a comprehensive analysis of high-quality corporate bond yields, weighted and adjusted to provide a precise 6.5-year spot rate.
Historical Context
This rate is crucial for monetary policy analysis, corporate investment strategies, and understanding the cost of capital for businesses.
Key Facts
- Represents high-quality corporate bonds with a 6.5-year maturity
- Provides insights into corporate borrowing costs
- Updated regularly by the Federal Reserve
FAQs
Q: What makes this a 'High Quality Market' rate?
A: The HQM rate focuses on corporate bonds from financially stable companies with strong credit ratings. These bonds are considered lower-risk investments with more predictable returns.
Q: How does this rate impact corporate borrowing?
A: The rate directly influences the cost of corporate debt, with higher rates making borrowing more expensive and potentially slowing corporate investment and expansion.
Q: How often is the HQMCB6Y6M rate updated?
A: The Federal Reserve typically updates this rate frequently, often daily or weekly, to reflect current market conditions and credit market dynamics.
Q: Why do investors care about this specific 6.5-year rate?
A: The 6.5-year rate provides a unique perspective on medium-term corporate credit markets, offering insights that differ from shorter or longer-term bond rates.
Q: What are the limitations of this economic indicator?
A: While valuable, the rate only represents high-quality corporate bonds and may not fully capture the entire spectrum of corporate credit markets or economic conditions.
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Citation
U.S. Federal Reserve, 6.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB6Y6M], retrieved from FRED.
Last Checked: 8/1/2025