Average daily volumes (ADV) for Tradeweb’s cash rates trading were US$455 billion for the month of July, the company reported, with overall government bond volumes reaching US$10 trillion. MarketAxess reported US$22 billion and US$492 billion for cash rates trading ADV and trading respectively.
Although cash rates ADV dropped month-on-month (MoM) for Tradeweb, with European government bonds falling by 15% from June and US government bonds by a less drastic 2.17%, significant gains were seen year-on-year (YoY). US government bonds were up 47% from July 2023, while European government bonds rose by a less drastic 17%.
At MarketAxess, US government bonds ADV was up by 29% YoY and down 0.88% MoM – mirroring the trend on a smaller scale.
Source: The Desk
There was a more balanced fight in corporate bond trading, which saw overall July volumes of US$147 billion at Tradeweb and US$159 billion at MarketAxess. The figures represent a YoY increase of 19% for MarketAxess, driven by activity in investment-grade credit, and a 41% hike at Tradeweb.
High yield credit trading contributed US$18 billion to Tradeweb’s July volumes, up 48% YoY, while investment grade carried the bulk with US$128 billion, up 40% YoY.
A similar balance was seen at MarketAxess, with high yield and investment grade volumes reported as US$24.8 billion and US$133.9 billion respectively. However, while this represents a close to 30% increase (29.1%) in investment grade volumes YoY, high yield volumes were down 9.5%.
Tradeweb fell below MarketAxess on net corporate bond trading ADV despite significant growth, recording US$6.6 billion to MarketAxess’s US$7.2 billion in July – a 4.9% YoY drop for the latter, and a 32.1% rise for the former. Trumid reported US$5.2 billion and saw the greatest YoY improvement of the three firms, up 59%.
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