What are Off-the-Run Treasuries?
How Do Off-the-Run Treasuries Work?
Why Do Off-the-Run Treasuries Matter?
Off-the-run Treasuries trade on a secondary market and typically have lower valuations (and higher yields). However, one of the most unique characteristics of off-the-run Treasuries is that they tend to construct a more accurate yield curve than on-the-run Treasuries do. This is because on-the-run Treasuries tend to have some price distortions caused by the fluctuating current demand for on-the-run Treasuries.