Dictionary of Banking Terms: 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.
