On-The-Run Treasuries


DEFINITION of 'On-The-Run Treasuries'

The most recently issued U.S. Treasury bond or note of a particular maturity. "On-the-run" Treasuries are the opposite of "off-the-run" Treasuries, which refer to Treasury securities that have been issued before the most recent issue and are still outstanding. Media mentions about Treasury yields and prices generally reference "on-the-run" Treasuries.

BREAKING DOWN 'On-The-Run Treasuries'

The on-the-run bond or note is the most frequently traded Treasury security of its maturity. Because on-the-run issues are the most liquid, they typically trade at a slight premium and therefore yield a little less than their off-the-run counterparts. Some traders successfully exploit this price differential through an arbitrage strategy that involves selling (or going short) on-the-run Treasuries and buying off-the-run Treasuries.

  1. UST

    The abbreviation for the United States Treasury. UST is commonly ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  3. Off-The-Run Treasuries

    All Treasury bonds and notes issued before the most recently ...
  4. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  5. 10-Year Treasury Note

    A debt obligation issued by the United States government that ...
  6. Interpolated Yield Curve - I Curve

    A yield curve derived by using on-the-run treasuries. Because ...
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