AxessPoint: Playing the long game—the best solutions for long duration trading

Long duration axesspoint KC v1

  • Recent steepening in the yield curve has widened rate differentials, drawing attention to pricing dynamics in the long end of the US IG market.

  • Depth-of-market metrics show a steady rise in long-end liquidity over the past few years, reducing execution risk and enabling larger trades with tighter spreads.

  • MarketAxess’ CP+™ and Tradability tools provide near real-time, unbiased pricing and liquidity measurement—empowering traders to navigate long-dated trades with precision and transparency.

The long end of the US investment grade curve is gaining renewed interest as curve steepening shifts rate dynamics. Once challenging to trade, longer maturities now benefit from deeper liquidity and tighter spreads, making execution more efficient. With tools like CP+ and Tradability, MarketAxess equips clients to navigate long-duration trading with confidence.

Depth of Market

Liquidity conditions at the long end of the US investment grade curve have improved meaningfully in recent years. Four years ago, client RFQs in bonds with 10 years or more to maturity would typically attract 6 responses. Today, that figure has risen to more than 10, underscoring a significant broadening of market depth at the long end of the curve.


Average responses back per RFQ (≥10 years)

Tighter Spread

CP+, MarketAxess’ AI-powered pricing engine, highlights a notable tightening of bid-ask spreads at the long end of the US investment grade curve. Over the past two years, median spreads have narrowed from $0.37 to $0.14, reinforcing the broader trend of improving liquidity in longer-dated bonds.


Median CP+ Bid/Ask spread in US IG by maturity ($)


Conclusion

The long end of the US investment grade curve is more accessible than ever, supported by deeper market depth and tighter spreads. By leveraging MarketAxess’ advanced pricing via CP+ and liquidity insights through Tradability, clients can execute long-duration trades with greater clarity, speed, and confidence.