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Business Definition for: Constant Maturity Treasury (CMT) index

Constant Maturity Treasury (CMT) index

weekly average of bond dealer quotes on Treasury securities with the same remaining time to maturity. The one-year CMT yield, calculated from Treasury issues maturing in one year, is a widely used index for adjustable-rate mortgages. Other Treasury indexes used in mortgage lending are the three-year and five-year CMT.

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