{"id":61730,"date":"2025-08-12T13:59:13","date_gmt":"2025-08-12T13:59:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/61730\/"},"modified":"2025-08-12T13:59:13","modified_gmt":"2025-08-12T13:59:13","slug":"summer-heat-subdues-european-activity-the-desk","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/61730\/","title":{"rendered":"Summer heat subdues European activity – The DESK"},"content":{"rendered":"


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Activity in both European high yield (HY) and investment grade (IG) declined in the last week of July, with trade volumes falling to yearly lows in both asset classes.<\/p>\n

According to TraX data from MarketAxess, investors continue to trade in smaller lots across European HY. The average trade size was 768333.1 in July, down from 826434.842 in June.<\/p>\n

\"EuropeanEuropean HY median bid-ask spread vs average trade size<\/p>\n

Bid-ask spreads ticked up at the end of the month in HY, signifying a slightly increased cost of trading, but remain firmly below the elevated levels seen at the start of April.<\/p>\n

By contrast, trade sizes in European IG have broadly maintained their average \u2013 although a spike in smaller trades was seen in the last week of July. Bid-ask spreads have continued to hover at post-Liberation day levels, not quite returning to the lows seen in February and March.<\/p>\n

Activity in the US grew over July in both IG and HY, with increased volumes driven by smaller trade sizes. This signals a recovery from a low early-June volumes in both asset classes.<\/p>\n

\"USUS IG TRACE count vs TRACE volume<\/p>\n

Using the bid-ask spread as a liquidity proxy, the cost of trading both US IG and HY has continued to decline since April \u2014 with a low of 0.153 in IG in the week to the 6 July, and a low of 0.0879 in HY in the week to 20 July.<\/p>\n

\u00a9Markets Media Europe 2025<\/p>\n

TOP OF PAGE<\/a><\/p>\n


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