The Nasdaq OMX Group, Inc. and TMX Group subsidiary, PC-Bond, are launching a new family of U.S. Treasury indices, the two organizations said Tuesday.
The RBC insight total return U.S. treasury (TRUST) indices are designed to be a transparent and broad measure of the U.S. Treasury note and bond market. The indices are rebalanced daily and not at month-end like other U.S. and European bond indices, which they say will reduce tracking errors and provide a more accurate reflection of current market conditions. Twenty-two indices will begin disseminating Tuesday through Nasdaq OMX Global Index Watch.
“By utilizing an objective and rules-based methodology, The RBC insight total return U.S. treasury indices exemplify our commitment to index transparency,” says John Jacobs, executive vice president, Nasdaq OMX Global Indexes.
“Through our partnership with PC-Bond, investors in the U.S. debt issuance market will have access to more information more frequently and therefore be able to make better informed investment decisions.”
“Our partnership with Nasdaq OMX allows us to leverage our mutual strengths to provide the market with an index family that is transparent, accurate and a truer reflection of the U.S. Treasury market,” adds John McLean, director, PC-Bond Index Group. “By utilizing a unique daily rebalance methodology, extremely reliable technology and Nasdaq OMX’s far-reaching distribution capability, we are able to bring much greater clarity to the active U.S. debt issuance market.”