DEFINITION of 'On-The-Run Treasury Yield Curve'

The U.S. Treasury yield curve derived using on-the-run treasuries. The on-the-run Treasury curve is the primary benchmark used in pricing-fixed income securities.

BREAKING DOWN 'On-The-Run Treasury Yield Curve'

While the on-the-run Treasury yield curve is typically used to price fixed-income securities, its shape is sometimes distorted by up to several basis points if an on-the-run Treasury goes "on special". A Treasury goes on special when its price is temporarily bid up, usually as the result of demand by securities dealers to use the security as a hedging vehicle.

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RELATED FAQS
  1. What is meant by off-the-run treasuries?

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  2. Where on the Internet can I find yield curves over various periods?

    Find out where to locate reliable yield curve information on the Internet, including the U.S. Department of the Treasury ... Read Answer >>
  3. Which economic factors impact treasury yields?

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  4. What is the current yield curve and why is it important?

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