Suppose you buy in September of 2023 a $1,000 government bond that expires in March of 2024. The bond promises 5.57% in interest rate annually. Expected inflation is calculated to be about 2.4% in March. What would be your real return on this bond?

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.