It seems to be always less than 2-yr and less than 5yr? How do you explain it? Look here: http://finance.yahoo.com/bonds/composite_bond_rates
You should be only looking at 3m, 6m, 2y, 5y, 10y and 30y. very other value is derived from those values and only an estimate.
Dreary Wrote: ------------------------------------------------------- > It seems to be always less than 2-yr and less than > 5yr? How do you explain it? > Look here: > > http://finance.yahoo.com/bonds/composite_bond_rate > s liquidity liquidity liquidity. This is (LTCM Blowup)^5. Buy off the run treasuries if you are holding to maturity, much better yield.
Are you all saying that there is no such thing as a 3-yr treasury? And that what is listed as 3-yr bond is simply a result of bootstrapping or some kind of structuring to make it so?
A 3-yr Treasury is off-the-run. It’s a seasoned 5 or 10 or something.
Great, but why would its yield be lower than both the 2-yr and the 5-yr? Is there more buying of it than of the others? Does this create any kind of arbitrage opportunity? I never rally noticed that.
That’s some kind of messed up Yahoo thing (I should have read the post more carefully). Maybe a time problem. Really yield curve is http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield.html
Thanks, now I can sleep better tonight.