New data reveals liquidity gaps in EU bond markets

Liquidity in German, Italian and UK bonds has suffered over past three years

bond market liquidity drying up
Liquidity costs for European government bonds have spiked in recent years

The cost of trading German government bonds has increased tenfold in the past three years as primary dealers have curtailed their market-making activities.

New data provided to Risk.net by Tradeweb reveals a dramatic increase in liquidity costs for European government bonds since the start of 2014. 

“Looking at Tradeweb data for German bunds with maturities ranging from five and a half to eleven and a half years, we can see a slightly rising trend over the last several years,” says Enrico Brun

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