On-The-Run Treasuries (OTR)

On-The-Run Treasuries (OTR) are the most recently issued United States Treasury Bond or Note of a given maturity. Compare these to their opposite of Off-The-Run Treasuries.

As a bond ages it no longer falls into the maturity that it was initially issued under. For example, one year after a 5-year bond was issued it is now a 4-year bond and traders wanting to trade 5-year bonds would be reluctant to trade the older bond if a new 5-year On-The-Run treasury has been issued.

The On-The-Run Bond or Note is the most frequently traded Treasury Security for its maturity. As such, it will be more liquid, more expensive (high demand) and have a lower yield than its Off-The-Run counterpart.