- quote -

When one asks for a quote for the S&P 500 index (SPX), one understands that
this is the S&P 500 Composite Stock Price Index, and that the current quote
is a hybrid of free float and cap weighting ("half float") and not the
provisional full float index.

http://www.sec.gov/rules/sro/amex/34-50019.pdf
["S&P has stated that, notwithstanding the simultaneous calculation of
provisional indexes, there will still be only one official set of S&P
indexes." p. 3]

Likewise, when one asks for a quote for the 30 year Treasury Index, there is
the understanding that this is a quote of yield (not price), and that this
is based on the most recently auctioned 30 year Treasury bond. That is the
definition of this index.

Here's the NASDAQ definition:
http://www.nasdaq.com/reference/glossary.stm#Treas

Of course if the quote deviates from the standard definition, then you are
right that the site needs to define what its quote represents.

- quote -

We aim to please :-)

--
Mark Freeland
nBeOwXs[at]pacbell.net

"Tad Borek" <borekfm[at]pacbell.net> wrote in message
news:sxYte.2061$Bx6.1182[at]newssvr13.news.prodigy.com...
- quote -



Tad,

The sites I normally check like Yahoo and Bloomberg give the 30 yr treasury
rate without any disclaimers so I am still puzzled. The lack of disclaimer
made me wonder if there was actually a 30 year bond being issued through a
channel other than the auctions. If the quote generators synthesize a
hypothetical bond to fill in the table, it should be so-stated IMO.

Thank you for your input. I enjoyed reading your other posts also.

JB


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a few lines to add context, the previous post is deleted.

JB wrote:
- quote -

JB-
There are no new 30-year Treasuries being issued, not since 2001. What
you see quoted depends on where you're looking. A few variations are:

* quote the rate for 20-year bonds - this is what the Dept of Treasury
data does now

* look at the yields for all of the longer-dated bonds that exist, and
extrapolate a hypothetical 30-year rate

* list a composite average for all the Treasury bonds beyond a certain
maturity, eg 20+ years or 25+ years

There's talk of issuing 30-year bonds again, as early as in Feb 06.

-Tad

They quit auctioning the 30-yr treasury almost four years ago, yet it's
referenced every day.

Is there indeed a 30 yr treasury bond today or are they actually quoting the
most recently auctioned bond which is effectively a 26 yr bond?

I checked the Bureau of Public Debt site before posting and could not find
the answer.