12-MTA Index is based on yields published in the release entitled the "Selected Interest Rates - H-15" which is published but the Federal Reserve Board on the first Tuesday of each month. 

Home Loans Group Finance performs a simple calculation of the proceeding 12-month annual yield to come up with the current yield number.

Instrument, "U.S. government securities/Treasury constant maturities/Nominal", Maturity, "1-month", Frequency, "Monthly", Description, "Market yield on 

U.S. Treasury securities at 1-month constant maturity, quoted on investment basis", Note, "Yields on actively traded non-inflation-indexed issues adjusted 

to constant maturities. The 30-year Treasury constant maturity series was discontinued on February 18, 2002, and reintroduced on February 9, 2006.

From February 18, 2002, to February 9, 2006, the U.S. Treasury published a factor for adjusting the daily nominal 20-year constant maturity in order to 

estimate a 30-year nominal rate. The historical adjustment factor can be found at 

www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindex_historical.shtml. 

http://www.federalreserve.gov/releases/H15/data/Monthly/H15_TCMNOM_M1.txt:

Source: U.S. Treasury."


DATE      , TCMNOMM1
07/2001, 3.67
08/2001, 3.53
09/2001, 2.68
10/2001, 2.27
11/2001, 1.99
12/2001, 1.72
01/2002, 1.68
02/2002, 1.74
03/2002, 1.79
04/2002, 1.72
05/2002, 1.74
06/2002, 1.72
07/2002, 1.72
08/2002, 1.68
09/2002, 1.67
10/2002, 1.62
11/2002, 1.26
12/2002, 1.20
01/2003, 1.17
02/2003, 1.20
03/2003, 1.18
04/2003, 1.16
05/2003, 1.08
06/2003, 0.97
07/2003, 0.90
08/2003, 0.95
09/2003, 0.91
10/2003, 0.91
11/2003, 0.94
12/2003, 0.89
01/2004, 0.85
02/2004, 0.92
03/2004, 0.96
04/2004, 0.91
05/2004, 0.91
06/2004, 1.05
07/2004, 1.19
08/2004, 1.37
09/2004, 1.55
10/2004, 1.63
11/2004, 1.92
12/2004, 1.96
01/2005, 2.05
02/2005, 2.36
03/2005, 2.65
04/2005, 2.64
05/2005, 2.65
06/2005, 2.83
07/2005, 3.10
08/2005, 3.34
09/2005, 3.23
10/2005, 3.51
11/2005, 3.91
12/2005, 3.69
01/2006, 4.12

Constant Maturity Treasury (CMT) indexes:

These indexes are the weekly average yields on U.S. Treasury Securities adjusted to a constant maturity of one year.  Yields on Treasury securities at "constant maturity" are interpolated by the U.S. Treasury from the daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. The CMT indexes are volatile and move with the market. They reflect the state of the economy, and respond quickly to economic changes. These indexes react more slowly than the CD index, but more quickly than the COF index.

1-Year Constant Maturity Treasury index (1 Yr. CMT)
This is the most widely used index. Roughly half of all ARMs are based on this index. It's used on ARMs with annual rate adjustments.

It is also referred to as the 1-Year Treasury Bill (1Yr T-Bill), the 1-Year Treasury Security (1Yr T-Sec), or the 1-Year Treasury Spot index. The one yr. T-Bill changes every day.

3-Year Constant Maturity Treasury index (3 Yr. CMT)
This index is less popular than the 1-Year CMT. ARMs based on the 3 Year CMT will adjust every three years (3Year ARMs).

It may be referred to as the 3-Year Treasury Security (3Yr T-Sec) index.

5-Year Constant Maturity Treasury index (5 Yr. CMT)
Same as the 3 Year CMT, only ARM loans indexed to the 5 Year CMT will adjust once every five years. [The ARM's adjustment period is usually the same as the security's constant maturity.]

The CMT indexes have both weekly and monthly values. If your being quoted a CMT index, be sure to note whether it's weekly or monthly.

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