Graph and download economic data for 100-Year High Quality Market (HQM) Corporate Bond Spot Rate (HQMCB100YR) from Jan 1984 to Jun 2025 about bonds, corporate, interest rate, interest, rate, and USA.

The Corporate Bond Market report segments the industry into By Type Of Bonds (Investment-Grade Corporate Bond Funds, High-Yield Corporate Bond Funds, Sector-Specific Corporate Bond Funds), By Investor Type (Institutional Investors, Retail Investors), and By Geography (North America, Europe, Asia Pacific, South America, Middle East). Get historical data covering five years and forecasts for the next five years.

Graph and download economic data for 50-Year High Quality Market (HQM) Corporate Bond Spot Rate (HQMCB50YR) from Jan 1984 to Jun 2025 about bonds, corporate, interest rate, interest, rate, and USA.

As of April 16, 2025, the yield for a ten-year U.S. government bond was 4.34 percent, while the yield for a two-year bond was 3.86 percent. This represents an inverted yield curve, whereby bonds of longer maturities provide a lower yield, reflecting investors' expectations for a decline in long-term interest rates. Hence, making long-term debt holders open to more risk under the uncertainty around the condition of financial markets in the future. That markets are uncertain can be seen by considering both the short-term fluctuations, and the long-term downward trend, of the yields of U.S. government bonds from 2006 to 2021, before the treasury yield curve increased again significantly in the following years. What are government bonds? Government bonds, otherwise called ‘sovereign’ or ‘treasury’ bonds, are financial instruments used by governments to raise money for government spending. Investors give the government a certain amount of money (the ‘face value’), to be repaid at a specified time in the future (the ‘maturity date’). In addition, the government makes regular periodic interest payments (called ‘coupon payments’). Once initially issued, government bonds are tradable on financial markets, meaning their value can fluctuate over time (even though the underlying face value and coupon payments remain the same). Investors are attracted to government bonds as, provided the country in question has a stable economy and political system, they are a very safe investment. Accordingly, in periods of economic turmoil, investors may be willing to accept a negative overall return in order to have a safe haven for their money. For example, once the market value is compared to the total received from remaining interest payments and the face value, investors have been willing to accept a negative return on two-year German government bonds between 2014 and 2021. Conversely, if the underlying economy and political structures are weak, investors demand a higher return to compensate for the higher risk they take on. Consequently, the return on bonds in emerging markets like Brazil are consistently higher than that of the United States (and other developed economies). Inverted yield curves When investors are worried about the financial future, it can lead to what is called an ‘inverted yield curve’. An inverted yield curve is where investors pay more for short term bonds than long term, indicating they do not have confidence in long-term financial conditions. Historically, the yield curve has historically inverted before each of the last five U.S. recessions. The last U.S. yield curve inversion occurred at several brief points in 2019 – a trend which continued until the Federal Reserve cut interest rates several times over that year. However, the ultimate trigger for the next recession was the unpredicted, exogenous shock of the global coronavirus (COVID-19) pandemic, showing how such informal indicators may be grounded just as much in coincidence as causation.

The Global Bond Market is Segmented by Type (Treasury Bonds, Municipal Bonds, Corporate Bonds, High-Yield Bonds, Mortgage-Backed Securities, and More), by Issuer (Public Sector Issuers, Private Sector Issuers), by Sectors (Energy and Utilities, Technology, Media and Telecom, Healthcare, Consumers, Industrial, Real Estate and More), and Region. The Market Forecasts are Provided in Terms of Value (USD).

Bond Fund Sales Market Outlook

The bond fund sales market size was valued at approximately USD 10 trillion in 2023 and is projected to reach around USD 15 trillion by 2032, growing at a compound annual growth rate (CAGR) of 4.5%. This growth is primarily driven by increasing investor demand for stable and diversified income streams amidst global economic uncertainties. The market size expansion is fostered by factors such as an aging global population seeking more conservative investment options, heightened volatility in equity markets, and favorable regulatory changes supporting bond fund investments.

One of the primary growth factors for the bond fund sales market is the demographic shift towards an aging population, particularly in developed regions such as North America and Europe. As more individuals approach retirement age, there is a heightened need for investment products that offer steady income with reduced risk exposure. Bond funds, known for their relatively stable returns and lower volatility compared to equity funds, serve as an attractive option for this demographic. Additionally, the increasing life expectancy rates globally are pushing retirees to seek long-term investment solutions that can provide consistent income streams over extended periods.

Another significant growth driver is the evolving regulatory landscape that favors bond investments. Governments and financial regulatory bodies in various regions are implementing rules and guidelines that promote transparency and investor protection in the bond markets. These regulatory changes increase investor confidence and make bond funds more appealing to both retail and institutional investors. Furthermore, the introduction of green bonds and other socially responsible investment (SRI) products within the bond fund market is drawing interest from a growing segment of environmentally and socially conscious investors.

Technological advancements and the proliferation of digital investment platforms are also contributing to the growth of the bond fund sales market. Online platforms and robo-advisors are making it easier for retail investors to access and manage bond fund investments with lower fees and greater convenience. These platforms provide investors with tools and resources to make informed investment decisions, thereby increasing the participation rate of individual investors in the bond market. This digital transformation is democratizing access to bond funds and expanding the market's reach across various investor segments.

Regionally, the bond fund sales market exhibits diverse growth patterns. North America and Europe are expected to maintain their dominance due to their mature financial markets and high levels of investor awareness and engagement. However, the Asia-Pacific region is anticipated to exhibit the highest CAGR during the forecast period, driven by rapid economic growth, rising disposable incomes, and increasing investor sophistication. Latin America and the Middle East & Africa regions are also witnessing growing interest in bond funds, albeit at a slower pace, as these markets gradually develop and integrate into the global financial system.

Fund Type Analysis

Government bond funds are a cornerstone of the bond fund market, offering investors a relatively low-risk investment option backed by government securities. These funds have been traditionally appealing to risk-averse investors, including retirees and conservative institutional investors. The demand for government bond funds is amplified during periods of economic uncertainty, as they are perceived as safe havens. The increasing issuance of government bonds to finance fiscal stimulus and infrastructure projects globally is also contributing to the growth of this segment. Moreover, central banks' policies, such as quantitative easing, have increased the liquidity and attractiveness of these bonds.

Corporate bond funds represent a significant portion of the bond fund market, providing higher yields compared to government bonds, albeit with increased risk. These funds invest in bonds issued by corporations to finance their operations and expansions. The corporate bond market is highly dynamic, with companies frequently entering and exiting the market based on their financing needs and credit ratings. The growth of this segment is supported by strong corporate earnings and favorable economic conditions that enhance companies' ability to service their debt. Additionally, the trend towards globalization and cross-border investments is expanding the market for corporate bond funds.

As of December 30, 2024, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of ***** percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United States had one the highest yield on 10-year government bonds at this time with **** percent, while Switzerland had the lowest at **** percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.

The yield on US 30 Year Bond Yield rose to 4.96% on July 11, 2025, marking a 0.09 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.11 points and is 0.56 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. United States 30 Year Bond Yield - values, historical data, forecasts and news - updated on July of 2025.

Graph and download economic data for 2.5-Year High Quality Market (HQM) Corporate Bond Spot Rate (HQMCB2Y6M) from Jan 1984 to Jun 2025 about 2.5-year, bonds, corporate, interest rate, interest, rate, and USA.

As of 2023, the United States had the largest bond market worldwide, accounting for nearly 40 percent of the total. The European Union was second in the ranking, accouting for almost one fifth of the total outstanding value of corporate and government bonds worldwid, followed by China with 16.3 percent.

United States - 10-Year High Quality Market (HQM) Corporate Bond Par Yield was 5.27% in May of 2025, according to the United States Federal Reserve. Historically, United States - 10-Year High Quality Market (HQM) Corporate Bond Par Yield reached a record high of 13.77 in June of 1984 and a record low of 1.93 in August of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - 10-Year High Quality Market (HQM) Corporate Bond Par Yield - last updated from the United States Federal Reserve on June of 2025.

Graph and download economic data for 10-Year High Quality Market (HQM) Corporate Bond Par Yield (HQMCB10YRP) from Jan 1984 to Jun 2025 about 10-year, bonds, yield, corporate, interest rate, interest, rate, and USA.

United States - 15-Year High Quality Market (HQM) Corporate Bond Spot Rate was 5.84% in May of 2025, according to the United States Federal Reserve. Historically, United States - 15-Year High Quality Market (HQM) Corporate Bond Spot Rate reached a record high of 13.07 in May of 1984 and a record low of 2.66 in July of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - 15-Year High Quality Market (HQM) Corporate Bond Spot Rate - last updated from the United States Federal Reserve on July of 2025.

The yield on China 10Y Bond Yield rose to 1.66% on July 11, 2025, marking a 0.01 percentage point increase from the previous session. Over the past month, the yield has edged up by 0 points, though it remains 0.60 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. China 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on July of 2025.

United States - 5-Year High Quality Market (HQM) Corporate Bond Par Yield was 4.68% in April of 2025, according to the United States Federal Reserve. Historically, United States - 5-Year High Quality Market (HQM) Corporate Bond Par Yield reached a record high of 13.98 in June of 1984 and a record low of 0.79 in August of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - 5-Year High Quality Market (HQM) Corporate Bond Par Yield - last updated from the United States Federal Reserve on June of 2025.

The yield on Japan 10Y Bond Yield rose to 1.51% on July 11, 2025, marking a 0.01 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.05 points and is 0.46 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Japan 10 Year Government Bond Yield - values, historical data, forecasts and news - updated on July of 2025.

Bond market statistics- issuance, redemption, and outstanding balance of domestic corporate bonds and financial bonds

The yield on France 10Y Bond Yield rose to 3.42% on July 11, 2025, marking a 0.01 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.23 points and is 0.27 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. France 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on July of 2025.

The market size of local corporate bonds in Russia increased over the period between 2012 and 2021. As of **************, the market value of corporate bonds in the country was estimated at **** trillion Russian rubles.

Graph and download economic data for 20-Year High Quality Market (HQM) Corporate Bond Spot Rate (HQMCB20YR) from Jan 1984 to Jun 2025 about 20-year, bonds, corporate, interest rate, interest, rate, and USA.