Information shares in the US Treasury market

B-Tier
Journal: Journal of Banking & Finance
Year: 2008
Volume: 32
Issue: 7
Pages: 1221-1233

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper highlights the previously neglected role of the futures markets in US Treasury price discovery. The estimates of 5- and 10-year GovPX spot market information shares typically fail to reach 50% from 1999 on. The GovPX information shares for the 2-year contract are higher than those of the 5- and 10-year maturities but also decline after 1998. Relative bid-ask spreads, number of trades, and realized volatility are statistically significant and explain up to 21% of daily information shares. In roughly 1/4 of cases when public information is released, the futures market gains information share, but macroeconomic announcements rarely explain information shares independently of liquidity.

Technical Details

RePEc Handle
repec:eee:jbfina:v:32:y:2008:i:7:p:1221-1233
Journal Field
Finance
Author Count
2
Added to Database
2026-01-26