- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 5. Fixed-Income Markets for Government Issuers
- Subject 1. Sovereign Bonds
CFA Practice Question
On-the-run Treasury securities are ______.
II. also called the current issue
III. securities that are replaced by on-the-run securities
I. the most recently issued securities in a maturity range
II. also called the current issue
III. securities that are replaced by on-the-run securities
Correct Answer: I and II
User Contributed Comments 4
| User | Comment |
|---|---|
| gill15 | I know it sounds stupid by technically aren't on the run securities replaced by on the run securities as well. Although the on the run are the most recent eventually there's another on the run which will replace it.... |
| Kevdharr | My thoughts exactly, gill15 lol |
| ascruggs92 | Nope. On-the-run Treasuries are the most recent issue, once the next issue happens they are no longer considered on the run. The bonds they will be replacing are ones that are maturing (at the end of their term), not the bonds that were issued immediately before that. Even in the event that the On-the-run securities do replace the most recent issue (I don't know how often they issue 3 month securities), the second that new issue is created, the old ones are no longer considered "on-the run." |
| khalifa92 | lol gll15, you're are technically right but the moment they are replaced by on-the-run securities the previous issue won't be. |