On the Run Treasuries Latest Issue Benchmark Liquidity 2026
The global treasury market has seen significant fluctuations in liquidity and demand, particularly as nations grapple with inflationary pressures and shifting monetary policies. In the United States alone, the market for treasuries has expanded, with the total outstanding treasury securities reaching approximately $31 trillion in 2023. As investors seek stable returns amidst economic uncertainty, the demand for “on-the-run” treasuries—newly issued government bonds—has remained robust. Recent statistics indicate that the liquidity in this segment is critical, as the average daily trading volume for U.S. treasury securities has consistently exceeded $600 billion, underscoring the importance of benchmark liquidity for market stability.
1. United States
The U.S. Treasury market is the largest in the world, with over $31 trillion in outstanding securities. On-the-run treasury securities are highly sought after for their liquidity, with daily trading volumes often surpassing $600 billion.
2. Japan
Japan’s government bonds (JGBs) totaled approximately ¥1,000 trillion ($9 trillion) in 2023. The Bank of Japan’s aggressive monetary policy has kept yields low, maintaining strong demand for new JGB issues.
3. Germany
Germany is the largest economy in Europe, with its bund market holding around €2.5 trillion in outstanding securities. The liquidity of German government bonds remains crucial, especially in the Eurozone’s economic landscape.
4. United Kingdom
UK gilts account for around £2 trillion in outstanding government debt. The issuance of new gilts continues to attract investors, with a significant portion of the market being actively traded.
5. France
France’s treasury securities amount to approximately €1.5 trillion, with on-the-run bonds being pivotal for institutional investors seeking liquidity and safety in the European market.
6. Canada
Canada’s federal debt is about CAD 1.2 trillion, with the Government of Canada Bonds market offering significant liquidity. The Canadian market is characterized by consistent investor interest in new issue bonds.
7. Australia
The Australian government bonds market is valued at around AUD 1 trillion. On-the-run bonds are crucial for domestic and international investors looking for stable returns amidst global uncertainties.
8. Italy
Italy’s government bonds stand at approximately €2.3 trillion. The liquidity of Italian BTPs remains a focal point for investors, especially during times of economic volatility in the Eurozone.
9. Spain
Spain’s outstanding government securities are about €1 trillion, with a growing appetite for new issues as investors seek to diversify their portfolios in the European market.
10. China
China’s government bonds are valued at around ¥20 trillion (approximately $3 trillion). The demand for on-the-run bonds has increased as the Chinese government seeks to stabilize its economy.
11. India
India’s bond market is projected to reach ₹100 trillion (approximately $1.3 trillion) by 2025. The Indian government actively issues new bonds to enhance market liquidity and attract foreign investment.
12. South Korea
South Korea’s treasury securities are valued at around KRW 1,000 trillion ($850 billion). The Korean market has seen a rise in liquidity for newly issued bonds, appealing to both domestic and foreign investors.
13. Brazil
Brazil’s government bonds total about R$1.5 trillion (approximately $300 billion). The liquidity in Brazilian treasury securities has improved, reflecting investor confidence amidst economic reforms.
14. Mexico
Mexico’s treasury securities are valued at approximately MXN 8 trillion ($400 billion). The country’s new bonds have garnered attention, contributing to a more liquid market environment.
15. Russia
Russia’s government bonds are valued at about ₽15 trillion (approximately $200 billion). The liquidity of Russian treasury securities has been under scrutiny due to geopolitical tensions affecting market dynamics.
16. Singapore
Singapore’s government securities amount to SGD 500 billion ($370 billion). The commitment to maintaining a robust bond market ensures liquidity for newly issued bonds.
17. Switzerland
Switzerland’s treasury bonds total approximately CHF 300 billion. The liquidity of Swiss government bonds remains strong, appealing to investors seeking security in turbulent times.
18. Netherlands
The Dutch government bond market is valued at around €450 billion. The ongoing issuance of new bonds is essential for maintaining liquidity and investor confidence.
19. Norway
Norway’s treasury securities are valued at approximately NOK 1 trillion ($100 billion). The demand for on-the-run bonds has remained stable, reflecting a strong investor base.
20. Hong Kong
Hong Kong’s government bonds amount to HKD 500 billion ($64 billion). The territory has been expanding its bond issuance to enhance liquidity and attract global investors.
Insights
The liquidity of on-the-run treasuries is critical for maintaining market stability, particularly as global economic conditions evolve. With central banks adjusting interest rates in response to inflation, the demand for newly issued bonds is expected to remain high. In 2023, the average daily trading volume of U.S. treasuries exceeded $600 billion, indicating robust market activity. Forecasts suggest that the global treasury market will continue to expand, with outstanding government debt projected to reach $40 trillion by 2026, driven by the need for countries to finance their budgets amidst ongoing economic challenges. As investors prioritize liquidity, the focus on on-the-run treasuries will be paramount in their investment strategies.
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