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

HQMCB89YR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

6.31

Year-over-Year Change

13.29%

Date Range

1/1/1984 - 6/1/2025

Summary

The 89-Year High Quality Market Corporate Bond Spot Rate represents a critical long-term benchmark for corporate bond yields in the United States. This metric provides insights into the cost of corporate borrowing and overall 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 spot rate reflects the yield of a zero-coupon bond at a specific maturity, offering economists a pure measure of borrowing costs without the complexity of coupon payments. It serves as a key indicator of corporate financial conditions and market sentiment about long-term economic prospects.

Methodology

The rate is calculated by the Federal Reserve using a sophisticated curve-fitting approach that analyzes high-quality corporate bond market data.

Historical Context

Policymakers, investors, and financial analysts use this rate to assess corporate credit markets, investment strategies, and potential economic trends.

Key Facts

  • Represents the yield for high-quality corporate bonds with an 89-year term
  • Provides a pure, zero-coupon measure of long-term corporate borrowing costs
  • Critical indicator for understanding market expectations and corporate financial conditions

FAQs

Q: What makes this spot rate different from other bond yield measures?

A: Unlike traditional bond yields, this spot rate eliminates coupon payment complexities, offering a cleaner view of pure borrowing costs at a specific maturity.

Q: How do investors use the 89-Year HQM Corporate Bond Spot Rate?

A: Investors analyze this rate to assess long-term market expectations, evaluate investment opportunities, and understand potential economic trends.

Q: Who calculates this specific spot rate?

A: The Federal Reserve calculates this rate using advanced statistical methods that analyze high-quality corporate bond market data.

Q: What economic insights can be gained from this rate?

A: The rate provides insights into corporate borrowing costs, market sentiment, and potential long-term economic conditions.

Q: How frequently is this data updated?

A: The Federal Reserve typically updates this data periodically, with the exact frequency depending on market conditions and data collection processes.

Related Trends

Citation

U.S. Federal Reserve, 89-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB89YR], retrieved from FRED.

Last Checked: 8/1/2025