Treasury Volatility

The influence of high-frequency traders in the Treasury market is growing. About 60 percent of Treasury securities trades are expected to be transacted on electronic platforms by the end of next year, an increase from 40 percent in 2013, according to Tabb Group LLC, a New York-based research firm. Of those trades, 10 percent were executed by robots in 2010, a share that will probably grow to 20 percent next year, according to Tabb (Bloomberg).  So much depends on Treasury Yields; fluctuations from robotic trading like that on October 15 could ripple across the broader economy.

One thought on “Treasury Volatility

  1. Nevertheless with 3.5 trillion of supply coming back on line as QE is wound down, there will be less chance of a supply side panic.

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