MTS Group reports rise in inflation linked bond trading

MTS Group,Europe’s premier facilitator for the electronic fixed income market, reported an increase in trading volumes in investment grade inflation-linked bonds for the first quarter of 2011, as investors moved to offset growing inflation risks.

Overall value traded in Italian, German and French inflation-linked bonds rose 26 per cent in the first quarter of 2011 compared to the same period last year, peaking at €19.8 billion* worth of trading in March 2011.

• Trading in German inflation-linked bonds increased 56 per cent in the first quarter of 2011 compared to the same period in 2010, peaking at €2.6 billion worth of trading in March 2011

• Trading in Italian inflation-linked bonds increased by over a third (34 per cent) in the first quarter of 2011 compared to same period last year, with over €6.6 billion worth of trading in March 2011

• Trading in French inflation-linked bonds rose by 17 per cent from Q1 2010 to Q1 2011, peaking at €10.5 billion worth of trading in March 2011

Guido Galassi, Product Manager at MTS, said: “There has been an increased focus on inflation over the last few months, and we have seen this sentiment reflected in the markets we facilitate. There has been a rapid growth in the liquidity of products linked to inflation. As the market continues to evolve, we will continue to provide transparency and efficiency to all participants”.

Benchmark market data on inflation-linked bonds is available direct from the MTS platform. Inflation-linked bonds available to trade on MTS include securities from France,Germany, Greece, Israel and Italy. These are also available to trade on EuroMTS, MTS’s pan-European benchmark market.

*Nominal value, single counted