Humans Lose to Machines in $500 Billion-a-Day Bond Market
This article is for subscribers only.
Human traders are increasingly losing out to machines in the world’s biggest bond market.
While investors traditionally negotiated prices for U.S. Treasuries by telephone, they’re increasingly turning to computer-based marketplaces for a range of price quotes from different dealers. A record 48 percent of trades in U.S. government debt have occurred on electronic platforms this year, up from 31 percent in 2012, according to a Greenwich Associates study released yesterday.