Overnight A2/P2 Nonfinancial Commercial Paper Interest Rate

RIFSPPNA2P2D01NB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.47

Year-over-Year Change

-0.22%

Date Range

10/29/2021 - 8/28/2025

Summary

The Overnight A2/P2 Nonfinancial Commercial Paper Interest Rate tracks the short-term borrowing costs for high-quality, non-financial corporate entities. This metric provides critical insight into corporate liquidity and short-term credit market 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 rate represents the interest rate for top-tier, two-day commercial paper issued by non-financial corporations with high credit ratings (A2/P2). It serves as a key indicator of short-term corporate funding costs and overall market credit conditions.

Methodology

The rate is calculated daily by the Federal Reserve based on actual transactions and reported rates from primary dealers and commercial paper market participants.

Historical Context

Policymakers and investors use this rate to assess corporate credit market health and potential economic stress. It helps inform monetary policy decisions and provides a real-time snapshot of corporate borrowing conditions.

Key Facts

  • Represents short-term, unsecured corporate debt instruments
  • Reflects credit ratings of A2/P2 or equivalent
  • Updated daily by Federal Reserve sources
  • Critical for assessing corporate liquidity conditions

FAQs

Q: What does A2/P2 mean in this context?

A: A2/P2 refers to high-quality credit ratings from major rating agencies, indicating low default risk for short-term corporate debt instruments.

Q: How frequently is this rate updated?

A: The Overnight A2/P2 Nonfinancial Commercial Paper Interest Rate is typically updated on a daily basis by the Federal Reserve.

Q: Why do investors track this rate?

A: Investors use this rate to understand corporate borrowing costs, assess market liquidity, and gauge potential economic conditions.

Q: How does this rate relate to monetary policy?

A: The rate provides insights into short-term credit markets that can influence Federal Reserve monetary policy decisions.

Q: What types of companies use commercial paper?

A: Large, creditworthy corporations typically use commercial paper for short-term financing needs, such as managing working capital.

Related Trends

Citation

U.S. Federal Reserve, Overnight A2/P2 Nonfinancial Commercial Paper Interest Rate [RIFSPPNA2P2D01NB], retrieved from FRED.

Last Checked: 8/1/2025