Sharper economic picture sets scene for dollar swaps rebound
Razor-thin bid/offer spreads and slim post-April trading volumes give way to an uptick in August
Post-April, political dramas conspired to keep a lid on US rates trading volumes, as a scarcity of buy-side interest whetted competition among dealers and made for paper-thin bid/offer spreads. In July, spreads tightened to 0.1 basis points for many swaps trades, meaning vanishingly thin margins for dealers.
But as the path of rate cuts started to become clearer, volumes ticked up in August and
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