US Treasury Market Structure Is Definitely Changing

Greenwich Associates just published my recent work examining changes to how US Treasurys are traded.  After years of little change, some real disruption now seems in the cards; direct streams are growing as a method for trading while the dealer-to-dealer and dealer-to-client markets overlap now more than ever.  Bloomberg News did a great job covering the research:

“Transparency should continue to get better across the board,” McPartland said in an interview. The ease of trading should improve as well, as more participants gather in fewer places, which could help make it easier for investors to buy Treasuries that aren’t the newest issued, known as off-the-run Treasuries, he said. “If we continue to see these improvements in on-the-run markets, we will see improvements in the off-the-run market.”

Please take a look at the full research here (Greenwich Associates client login required).