85.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
This dataset tracks 85.5-year high quality market (hqm) corporate bond spot rate over time.
Latest Value
6.32
Year-over-Year Change
11.27%
Date Range
1/1/1984 - 7/1/2025
Summary
The 85.5-Year High Quality Market Corporate Bond Spot Rate represents a critical long-term benchmark for corporate bond pricing and yield expectations. This rate provides insights into the cost of corporate borrowing and investor expectations for extended economic 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
This spot rate tracks the theoretical yield for high-quality corporate bonds with an extremely long 85.5-year maturity, reflecting sophisticated financial market expectations. Economists and investors use this rate to understand long-term capital market trends and potential economic trajectory.
Methodology
The rate is calculated by the Federal Reserve using a complex yield curve methodology that interpolates bond market data across multiple quality and maturity segments.
Historical Context
Policymakers and institutional investors use this rate to assess long-term economic expectations, corporate credit risk, and potential investment strategies.
Key Facts
- Represents an ultra-long-term corporate bond yield benchmark
- Provides insights into extended economic and market expectations
- Calculated using advanced Federal Reserve yield curve methodologies
FAQs
Q: What does an 85.5-year corporate bond spot rate indicate?
A: It reflects extremely long-term market expectations for corporate borrowing costs and economic conditions. The rate provides a sophisticated view of potential future financial landscapes.
Q: How is this rate different from standard bond rates?
A: Unlike typical bond rates, this 85.5-year rate represents an exceptionally long-term perspective, capturing potential multi-generational economic trends and investor sentiment.
Q: Who primarily uses this specific rate?
A: Institutional investors, central bank economists, and advanced financial strategists use this rate for complex long-term economic modeling and investment planning.
Q: How often is this rate updated?
A: The Federal Reserve typically updates this rate periodically, reflecting current market conditions and evolving economic expectations.
Q: What limitations exist in interpreting this rate?
A: The extreme long-term nature means the rate involves significant speculation and should be interpreted with caution, recognizing inherent economic uncertainties.
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Citation
U.S. Federal Reserve, 85.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB85Y6M], retrieved from FRED.
Last Checked: 8/1/2025