On-the-run treasury securities (recently issued, actively traded) are liquid and acceptable as collateral in repo markets, while off-the-run treasuries (older issues) become illiquid during stress and are rejected as repo collateral, forcing dealers to sell them at reduced prices when they cannot fund purchases in repo.
factualpending
Speaker
Jeff SniderEvidence Quote
“on the Run...treasury that is sold at last month's auction that's on the run...The On The Run stuff...that's the stuff that's liquid”
Created: 8/12/2026, 10:39:49 PM
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