12 Month MTA Index

The Monthly Treasury Average, also known as 12-Month Moving Average Treasury index (MAT) is a relatively new ARM index. This index is the 12 month average of the monthly average yields of U.S. Treasury securities adjusted to a constant maturity of one year. As a result:

Higher yields are offset by lower yields on a monthly basis throughout the year

it creates an index which is far less volatile than other pure indices.

Interest rate increases take longer to affect the 12 Mo. MTA than other indices.

It is calculated by averaging the previous 12 monthly values of the 1-Year CMT.

Because this index is an annual average, it is more steady than the 1-Year CMT index. The MTA and CODI indexes generally fluctuates slightly more than the 11th District COFI, although its movements track each other very closely.