Quick Finance Tip – Benchmark Yield, On The Run and Off The Run

​Benchmark yield for a fixed-income security, and is the base rate where the spread is the difference between the Yield to Maturity and the Benchmark. On the run is the most recently issued government bond and is typically traded at a slightly lower Yield to Maturity than the off the run bond (seasoned government bonds). This is attributed by having various times to maturity and demand.