U.S. Treasury bond trading volumes rose 23.6% in May

Daily trading volumes in the U.S. Treasury bond market surged in May by 23.6%, driven by markets’ growing expectations for interest rate cuts by the Federal Reserve, data from Tradeweb showed on Wednesday.

The trading platform said average daily volume (ADV) in Treasury bond trading on its platform was $83.6 billion. Treasury yields have fallen sharply in recent months, with 10-year yields declining around 35 basis points in May.

Overall bond ADV also touched a new monthly record of $741.8 billion, or up 38.7% on the year, the platform said, adding:

“The strong volumes were driven by a rise in trading of short-term tenors, as well as continued growth in overall trading activity.”

The ADV of repurchase agreements or repos surpassed $200 billion for the first time since March 2009, a 43.7% rise on year-ago levels, the data showed.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell