Via Bloomie comes Satyajit Das:
But the unusual size of the moves — regularly on the order of 1 per cent to 3 per cent — is being heightened by something else: the struggle to find someone with whom to trade.
The decline in trading liquidity is evident in several metrics. Volumes have declined. Since 2007, average daily trading in US Treasury bonds (measured as a percentage of market size) has fallen by over 60 per cent.
