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published: 8.15.01
New issue activity in the U.S. bond market surged in the first half of 2001, totaling $2.1 trillion, up 64 percent from the $1.3 trillion issued in the same period last year. Investor demand was strong as the stock market stumbled and investors sought the relative stability of fixed income securities. Also, the lower interest rate environment relative to last year spurred issuance, with volume higher across most sectors,with the exception of the Treasury market.Mortgage-related securities issuance reached a new record during the first half of 2001, buoyed by the strong housing market and an increase in mortgage originations. Federal agency debt issuance was also up strongly in the first half of the year. Secondary market average daily trading volume was up across most reported markets, with the exception of the municipal market, where trading volume was slightly lower.
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