Off-the-Run Treasuries

Written By
Paul Tracy
Updated November 4, 2020

What are Off-the-Run Treasuries?

An off-the-run Treasury is any Treasury bill or note that is not part of the most recent issue of the same maturity.

How Do Off-the-Run Treasuries Work?

For example, let's assume that in March, the U.S. Treasury issues 10-year bonds. Six months later, in September, it issues another batch of 10-year Treasury bonds. The March issue of Treasuries becomes off the run; the September issue is now "on the run."

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.

Activate your free account to unlock our most valuable savings and money-making tips.

Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Off-the-Run Treasuries.
Be the first to ask a question

If you have a question about Off-the-Run Treasuries, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Off-the-Run Treasuries, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Off-the-Run Treasuries

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms