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Explain what an on the run and off the run treasury securities

Explain what an on the run and off the run treasury securities
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On the Run treasury securities are the most recently issued Treasury Bonds and Notes having a particular maturity period. On the Run Treasury Securities are the most liquid and most traded in the market.

Off the Run Treasury Securities are the previously issued Treasury Bonds and Notes that are still outstanding.

The On the Run treasury securities turn into Off the Run Treasury Securities when a new set of Treasury securities are issued in the next period.

On the Run treasury securities are generally traded at a slight premium than Off the Run Treasury Securities and offers a lesser yield as compared to Off the Run Treasury Securities.

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