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

HQMCB72Y6M • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

6.29

Year-over-Year Change

11.13%

Date Range

1/1/1984 - 7/1/2025

Summary

The 72.5-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks long-term corporate bond yields across high-quality credit instruments. This metric provides crucial insights into corporate borrowing costs and market expectations for long-term debt financing.

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 sophisticated measure of corporate bond yields that adjusts for credit quality and market conditions. Economists and financial analysts use this rate to assess corporate credit markets, investment opportunities, and broader economic trends.

Methodology

The rate is calculated by the Federal Reserve using a comprehensive methodology that considers multiple high-quality corporate bond characteristics and market yields.

Historical Context

This indicator is critical for monetary policy analysis, investment strategy development, and understanding long-term corporate financing dynamics.

Key Facts

  • Represents yields for high-quality corporate bonds with a 72.5-year maturity
  • Provides insights into long-term corporate borrowing costs
  • Used by economists and investors to assess market conditions

FAQs

Q: What makes this bond rate 'high quality'?

A: High-quality bonds are issued by financially stable corporations with strong credit ratings, typically AAA or AA, indicating lower default risk.

Q: How does this rate impact corporate borrowing?

A: The rate directly influences the cost of long-term corporate debt, with higher rates making borrowing more expensive for companies.

Q: How often is this rate updated?

A: The Federal Reserve typically updates these rates periodically, reflecting current market conditions and economic trends.

Q: Why is a 72.5-year spot rate significant?

A: This extremely long-term rate provides unique insights into very long-term market expectations and corporate financing strategies.

Q: Can investors directly use this rate?

A: While not a direct investment instrument, the rate helps investors understand broader market trends and corporate bond valuations.

Related Trends

Citation

U.S. Federal Reserve, 72.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB72Y6M], retrieved from FRED.

Last Checked: 8/1/2025