News & Views Article
BondWave Trade Insights: Volume 8
Paul Daley - March 20, 2020

Quote Activity

Download PDF

With the extreme volatility in the fixed income market, participants have altered their quoting patterns. As expected in a falling market, standing bids on ATS’s have begun to dry up while offer activity remains strong.

The following two charts show the total number of unique bids and offers per day on ICE BondPoint for the past month. Measurements are taken in 15-minute increments. Bids are down across the board while offers remain relatively stable in Government/Agency and Municipal bonds.

Total number of unique bids by asset type per day for the past month

Source: ICE BondPoint

Total number of unique offers by asset type per day for the past month

Source: ICE BondPoint

It can also be useful to examine the number of unique CUSIPs that are being bid for and offered over time. The following two charts show the total number of unique CUSIPs being bid for and offered per day on ICE BondPoint for the past month.

The number of unique CUSIPs bid for by asset type per day for the past month

Source: ICE BondPoint

The number of unique CUSIPs being offered by asset type per day for the past month

Source: ICE BondPoint

Unsurprisingly, the number of CUSIPs being bid for has shrunk along with the total number of bids. However, on the offer side the number of Corporate CUSIPs is relatively stable even as the number of offers has shrunk indicating fewer people offering the same number of bonds.

Keep on reading:

Fixed Income Equitization

Who thinks about grades in the summer? MD Paul Daley does... at least when it concerns the equitization of the fixed income markets. Check out his perspective on the equitization progress in the areas

July 23, 2024
Institutional Trading Costs for All

MD Paul Daley uses BondWave's Transaction Quality Analytics Benchmarks to reveal fundamental changes in the corporate bond trading environment.

January 23, 2024
The Muni/Treasury Ratio and The Fed Funds Rate Hikes of 2022-23

BondWave's Madhura Katre delves into the Fed's recent rate hikes and the impact on the municipal yield curve and muni/treasury ratio in her latest Trade Insights piece.

October 24, 2023
Corporate Bond Portfolio Trading Examined

Using FINRA's new portfolio trading flag, Paul Daley examines the cost effectiveness of portfolio trades through BondWave's Transaction Quality Analysis lens, which compares transaction costs to a pee

August 9, 2023