Fixed-Income Markets for Government Issuers

Free CFA Level I lesson in Fixed Income. 12 min read, ~1,810 words.

Sovereigns issue T-bills (≤1y), notes (2-10y), bonds ( 10y), plus inflation-linked variants, via scheduled auctions. Single-price auctions clear at one uniform yield; multiple-price auctions fill each bid at its own yield. On-the-run = most recent issue, most liquid benchmark, tightest spreads; off-the-run is older, less liquid, trades at a small...