US Treasuries had their first trillion-dollar month in August thanks to a surprise rate hike from the Bank of Japan and ongoing fiscal uncertainty in the US. And while e-trading in US corporate bonds was 44% of notional volume, flat YoY, it was 33% higher in terms of absolute notional volume. The data is drawn from Coalition Greenwich’s Data Spotlight — US Rates Trading and US Credit Trading.
Rates
The US treasury market recorded its first month with an average daily notional volume (ADNV) of more than US$1 trillion, 37% higher than August 2023.
CME US Treasury futures contract volumes also grew 37% year-over-year, and SOFR futures volumes were up 40% YoY.
Electronic trading volume was up 32% YoY on an absolute basis, although down 2% on a relative basis from last August.
The buy-side traded directly with dealers via phone and chat more than in previous months, driving dealer-to-client e-trading volumes down 8%…
