CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

On-the-run Treasury securities are ______.

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.
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