Interpolated Yield Curve - I Curve

The Interpolated Yield Curve, or the “I Curve,” shows the yield of on-the-run Treasuries, which are the most recently issued batch of U.S. Treasury bonds...hot off the U.S. Treasury grill.

On-the-run Treasury bonds come out in these batches, so they’re limited to specific maturities. When the I Curve is graphed with time on the x-axis and interest rates on the y-axis, the curve shows the different maturities of U.S Treasury bonds. Since bonds with longer terms have better yields (usually) and shorter term bonds have lower yields, the I Curve most often starts at the bottom left and slopes upwards.

Since the I Curve is only plotting on-the-run Treasuries, it’s showing only the newest issued U.S. Treasury securities, which is a small amount compared to the total outstanding U.S. Treasury securities that are out there.