This is index is the 12 month average of the monthly average yields of U.S. Treasury securities adjusted to a constant maturity of one year.  In plain English, this index is calculated by averaging the previous 12 rates of the 1 Year CMT.   Because this particular index is an annual average, it is more steady than the 1 Year Treasury Index.  It fluctuates slightly more than the 11th District Cost of Funds, although its movements track each other very closely, as shown on our comparison charts.  The terms 12 MTA (12 month treasury average) and 12 MAT (12 month average treasury) are used interchangeably.

The Fed Funds Target Rate is a short-term rate objective of the Federal Reserve Board.  The actual Fed Funds Rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.  The real rate changes daily but is usually close to the target rate desired by the Federal Reserve.  Adjustments to the Fed Funds Target Rate are made by the Federal Open Market Committee (FOMC) usually at regularly scheduled meetings; but can also be adjusted at any time using emergency meetings.  The rates reported below are based upon the Fed Funds Target Rates on the first day of each respective month.

 The 11th District Cost of Funds Index (COFI) is the weighted average of the cost of borrowings (funds) to member banking institutions of the Federal Home Loan Bank of San Francisco (the 11th District). The index rate tends to lag market interest rate adjustments and is relatively stable because institutions borrow money for varying terms and do not pay market rates for all of their funds. For example, institutions most commonly borrow from depositors in the form of certificates of deposit (cd's). The terms on cd's vary from several days to several years and the interest rates paid were determined at the time of the deposit.

This index is reported monthly. Although, the reported rate generally lags behind two months (e.g. January's index is reported in March, February's index is reported in April, etc.)

This index is an average yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal Reserve Board.  Yields are interpolated by the United States Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market.