On-the-Run Treasury Yield Curve

The on-the-run Treasury yield curve is a yield curve that plots the yields of Treasury securities that have the same maturity but different issue dates. The on-the-run Treasury yield curve is often used as a benchmark for other yield curves, such as the corporate yield curve and the municipal yield curve.

The on-the-run Treasury yield curve is constructed by plotting the yields of Treasury securities that have the same maturity but different issue dates. The most recent issue of a Treasury security with a given maturity is called the on-the-run Treasury security. The yield of the on-the-run Treasury security is used as the benchmark yield for that maturity.

The on-the-run Treasury yield curve is important because it is used as a reference point for other yield curves. For example, the corporate yield curve is often constructed by adding a spread to the on-the-run Treasury yield curve. The spread is a measure of the additional risk associated with investing in corporate bonds compared to investing in Treasury bonds.

The on-the-run Treasury yield curve can also be used to forecast future interest rates. For example, if the on-the-run Treasury yield curve is steep, it suggests that investors expect interest rates to rise in the future. Conversely, if the on-the-run Treasury yield curve is flat, it suggests that investors expect interest rates to remain stable in the future.

The on-the-run Treasury yield curve is a valuable tool for investors and analysts. It can be used to compare the relative value of different investments, to forecast future interest rates, and to manage risk.

Here are some additional details about the on-the-run Treasury yield curve:

• The on-the-run Treasury yield curve is typically constructed using Treasury securities with maturities ranging from one month to 30 years.
• The on-the-run Treasury yield curve is published by the U.S. Treasury Department on a daily basis.
• The on-the-run Treasury yield curve is often used as a benchmark for other yield curves, such as the corporate yield curve and the municipal yield curve.
• The on-the-run Treasury yield curve can be used to compare the relative value of different investments, to forecast future interest rates, and to manage risk.