In 2024, the yield on 10-year U.S. treasury securities increased to **** percent, up from **** percent in the previous year. 2020 recorded the lowest value in the period under consideration, and well below the longer-term average. In 1980 the yield was ***** percent. What are treasury securities? The United States government consistently has a budget deficit, and it finances this spending with debt issued by the Treasury Department. These treasury securities are attractive investments because most investors believe that the United States Treasury Department will never default. For this reason, many investors of different varieties hold these securities. Country differences The markets consider treasury securities to be low-risk, as they are secured by governments. Different countries differ in level of indebtment, value of investments, stability of currency, GDP growth, inflation, etc. These factors are the reasons why yields on government bonds differ from country to country. The yield shows how much a given government has to pay to the investors for the money that it borrows.

Treasury Bills Market Outlook

According to our latest research, the global Treasury Bills market size reached USD 7.9 trillion in 2024, reflecting robust growth driven by heightened demand for low-risk, highly liquid investment vehicles amid fluctuating macroeconomic conditions. The market is expected to expand at a CAGR of 4.7% from 2025 to 2033, with a forecasted market size of USD 12.1 trillion by 2033. This growth is primarily attributed to increased government borrowing, evolving regulatory frameworks, and the persistent appetite for secure, short-term instruments among institutional and retail investors worldwide.

A principal growth factor for the Treasury Bills market is the prevailing global economic uncertainty, which has led investors to seek safer havens for their capital. Treasury Bills, known for their minimal default risk and high liquidity, have become increasingly attractive as financial markets experience volatility due to geopolitical tensions, inflationary pressures, and shifting monetary policies. Central banks and governments have also ramped up the issuance of Treasury Bills to manage short-term funding needs and stabilize national economies, further fueling the expansion of the market. This dynamic has resulted in greater participation from both domestic and foreign investors, reinforcing the critical role of Treasury Bills in financial portfolio diversification.

Another key driver is the digital transformation of financial markets, which has significantly streamlined the distribution and trading of Treasury Bills. The proliferation of online trading platforms and the integration of advanced fintech solutions have democratized access to these instruments, enabling a broader spectrum of investors—including retail participants—to engage in Treasury Bill transactions. Enhanced transparency, real-time pricing, and seamless settlement processes have made Treasury Bills more accessible and appealing, especially in emerging markets where digital adoption is accelerating. This technological evolution is expected to sustain market growth by fostering greater efficiency and inclusivity in Treasury Bill investments.

Additionally, regulatory reforms aimed at strengthening financial stability have played a pivotal role in boosting the Treasury Bills market. Policymakers across various regions have implemented measures to encourage prudent liquidity management among financial institutions, often mandating higher allocations to government securities such as Treasury Bills. These reforms, coupled with increasing fiscal deficits in many economies, have led to a steady uptick in Treasury Bill issuance. The resulting expansion in supply has been matched by robust demand from institutional investors seeking compliance with liquidity coverage ratios and capital adequacy requirements, further cementing the market’s upward trajectory.

From a regional perspective, North America continues to dominate the Treasury Bills market, accounting for the largest share in 2024, followed closely by Asia Pacific and Europe. The United States, in particular, remains a global benchmark due to its deep and liquid government securities market, while China and India are emerging as significant contributors to regional growth. In Europe, the market is buoyed by the European Central Bank’s ongoing monetary interventions and fiscal stimulus measures. Meanwhile, Latin America and the Middle East & Africa are witnessing gradual expansion, driven by financial sector reforms and increasing investor awareness. These regional trends underscore the global nature of the Treasury Bills market and its resilience amid diverse economic environments.

Type Analysis

The Treasury Bills market is segmented by type into 91-Day, 182-Day, 364-Day, and Others, each catering to different investor preferences and liquidity requirements. The 91-Day Treasury Bill segment represents the most actively traded and widely issued type, favored for its ultra-short maturity and frequent auction cycles. Governments utilize 91-day bills to manage immediate cash flow needs, while investors appreciate the rapid turnover and minimal interest rate exposure. The consistent demand for 91-day bills is further reinforced by their role as a benchmark for short-term interest rates and their utility in monetary policy operations. This segment's dominance is expected to persist, supported by ongoing efforts to enhance market liquidity and

The average market risk premium in South Africa increased to *** percent in 2024. Market premium risk represents the difference between return on equities and a risk-free investment, which is normally associated with short-term government bonds. For comparison, the U.S. market premium risk amounted to *** percent in the same year. Risk-free rate Most analysts consider the U.S. treasury rate to be the risk-free rate for the term of their investment, assuming the United States government will not default. Just as consumers in the Unites States get a credit rating, agencies such as Standard & Poor’s rate countries’ credit risks. Using these data, analysts compute the country-specific default risk, which in turn has an influence on the value of risk-free rate. What influences the return on equities? The economic factors such as political stability in a country, inflation rate, level of indebtment, trade deficit and investments have an influence on the activities of companies and their valuation on the stock exchanges. Apart from the economic cycle, the company’s operations itself, which are reflected in the results published in the financial reports, can boost or diminish the stock returns.

Graph and download economic data for Moody's Seasoned Baa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity (BAA10Y) from 1986-01-02 to 2025-12-01 about Baa, spread, 10-year, maturity, bonds, Treasury, yield, corporate, interest rate, interest, rate, and USA.

View market daily updates and historical trends for US Corporate BBB Bond Risk Premium. from United States. Source: Bank of America Merrill Lynch. Track e…

ABSTRACT This paper investigates the drivers of long term real interest rates in Brazil. It is shown that long term yield on inflation linked bonds are driven by yields on 10 year interest rates of United States (US) government bonds and 10 year risk premium, as measured by the Credit Default Swap (CDS). Long term interest rates in Brazil were on a downward trend, following US real rates and stable risk premium, until the taper tantrum in the first half of 2013. From then onwards, real interest rates rose due to the increase in US real rates in anticipation of the beginning of monetary policy normalization and, more recently, due to a sharp increase in Brazilian risk premium. Policy interest rates do not significantly affect long term real interest rates.

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Fixed Income Assets Management Market Size 2025-2029

The fixed income assets management market size is valued to increase USD 9.16 tr, at a CAGR of 6.3% from 2024 to 2029. Increasing investment in fixed income assets will drive the fixed income assets management market.

Major Market Trends & Insights

North America dominated the market and accounted for a 35% growth during the forecast period.
By Type - Core segment was valued at USD 13.18 tr in 2023
By End-user - Enterprises segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 55.33 tr
Market Future Opportunities: USD 9156.40 tr
CAGR : 6.3%
North America: Largest market in 2023

Market Summary

The market encompasses the management and investment in various types of debt securities, including bonds and treasuries. Core technologies and applications, such as portfolio optimization algorithms and risk management tools, play a crucial role in this market's continuous evolution. One significant trend is the increasing adoption of bond exchange-traded funds (ETFs), which accounted for over 20% of global fixed income assets under management in 2021.
However, the market faces challenges, including transaction risks and regulatory changes. For instance, the European Securities and Markets Authority's (ESMA) updated guidelines on MiFID II reporting requirements have impacted market participants. Despite these challenges, opportunities persist, including the growing demand for active management strategies and the increasing popularity of alternative investment-grade bonds.

What will be the Size of the Fixed Income Assets Management Market during the forecast period?

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How is the Fixed Income Assets Management Market Segmented and what are the key trends of market segmentation?

The fixed income assets management industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD tr' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Core
  Alternative


End-user

  Enterprises
  Individuals


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The core segment is estimated to witness significant growth during the forecast period.

Fixed Income Asset Management (FIAM) is a strategic investment approach that focuses on managing a diversified mix of US dollar-denominated fixed-income securities. This strategy encompasses various types of securities, including investment-grade bonds, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), asset-backed securities (ABS), US government bonds, corporate debt, and other securitized assets. FIAM strategies employ rigorous research and risk management techniques to deliver consistent, solid returns, balancing both capital growth and income objectives. Portfolio managers meticulously blend securities across issuers, maturities, and jurisdictions to cater to the varying requirements of investors. Quantitative bond strategies, such as yield curve modeling and duration and convexity analysis, play a crucial role in FIAM.

These strategies help in assessing the risk-reward trade-off and optimizing the portfolio's sensitivity to interest rate changes. Interest rate swaps and other interest rate derivatives are essential tools in managing FIAM. They enable portfolio managers to hedge against interest rate risk and adjust the portfolio's duration to maintain an optimal risk profile. Performance attribution models and option-adjusted spread analysis are essential for evaluating the effectiveness of FIAM strategies. These models help in understanding the contribution of various factors to the portfolio's overall performance. Liquidity risk management is another critical aspect of FIAM. Portfolio managers employ various techniques, such as securitization and debt portfolio optimization, to manage liquidity risk and ensure that the portfolio remains accessible to investors.

Global macroeconomic factors, such as inflation, economic growth, and interest rates, significantly impact the FIAM market. Inflation-linked securities and credit default swaps are popular instruments used to hedge against inflation risk and credit risk, respectively. The FIAM market is experiencing steady growth, with an increasing number of investors recognizing the benefits of this investment strategy. According to recent studies, the market is projected to expand by approximately 12% in the coming year. Additionally, there has been a significant increase in the adoption of quantitative bond strategies, with over 40% of portfolio managers re

Surety Bid Bond Market Outlook

According to our latest research, the Global Surety Bid Bond market size was valued at $11.2 billion in 2024 and is projected to reach $18.6 billion by 2033, expanding at a CAGR of 5.9% during 2024–2033. The primary factor fueling the growth of the Surety Bid Bond market globally is the increasing demand for robust risk mitigation mechanisms in the construction and infrastructure sectors, driven by stringent government regulations and the rising volume of public and private projects. As the complexity and value of contracts escalate, stakeholders are increasingly seeking financial security instruments such as bid bonds to ensure project commitment and minimize the risk of default, thus propelling the market forward.

Regional Outlook

North America currently commands the largest share of the Surety Bid Bond market, accounting for approximately 34% of the global market value in 2024. This dominance is primarily attributed to the region’s mature construction and infrastructure sectors, coupled with well-established regulatory frameworks mandating the use of surety bonds for public projects. The United States, in particular, benefits from a long-standing tradition of utilizing bid bonds as a prerequisite for government contracts, ensuring transparency and accountability. Additionally, North America’s advanced insurance industry, high awareness among stakeholders, and the presence of major surety providers further reinforce its leading position in the global market. The region’s emphasis on risk management and compliance, as well as ongoing investments in infrastructure modernization, continue to drive steady demand for bid bonds.

Asia Pacific is poised to be the fastest-growing region in the Surety Bid Bond market, projected to register a remarkable CAGR of 7.6% during the forecast period. This robust growth is fueled by rapid urbanization, significant infrastructure development, and increasing participation of private players in public projects across countries such as China, India, and Southeast Asian nations. Governments in the region are introducing reforms to attract foreign investment and ensure the timely completion of large-scale projects, which is boosting the adoption of bid bonds as a standard risk mitigation tool. Furthermore, the expansion of local insurance companies and the entry of international surety providers are enhancing market accessibility and awareness, contributing to the region’s accelerated growth trajectory.

In emerging economies, particularly in Latin America and parts of the Middle East & Africa, the Surety Bid Bond market is experiencing gradual adoption amidst several challenges. While the need for bid bonds is rising in response to increasing infrastructure and government-backed projects, market penetration remains hindered by factors such as limited awareness, regulatory inconsistencies, and underdeveloped insurance sectors. Localized demand is often influenced by government procurement policies and the pace of economic development. However, ongoing policy reforms, capacity-building initiatives, and the entry of global surety providers are expected to gradually address these barriers, fostering more robust market growth in these regions over the next decade.

Report Scope

View the spread between a computed option-adjusted index of all BBB-rated bonds and a spot Treasury curve.

Surety Bond Market Outlook

According to our latest research, the global surety bond market size reached USD 19.2 billion in 2024, reflecting a robust expansion driven by increasing infrastructure investments and stringent regulatory frameworks across various sectors. The market is projected to grow at a CAGR of 6.1% from 2025 to 2033, culminating in a forecasted value of USD 32.6 billion by 2033. This impressive growth trajectory is attributed to the rising demand for risk mitigation instruments in construction, transportation, and government projects, as well as the growing adoption of digital solutions for bond issuance and management.

One of the primary growth factors propelling the surety bond market is the surge in global infrastructure development. Governments and private enterprises are heavily investing in public works, energy, and transportation projects, which require robust financial guarantees to ensure project completion and compliance with contractual obligations. Surety bonds serve as crucial risk management tools, protecting project owners from losses due to contractor default or non-performance. The increasing complexity and scale of these projects, combined with heightened regulatory scrutiny, have made surety bonds indispensable for all stakeholders involved. Additionally, the expansion of Public-Private Partnerships (PPPs) in both developed and emerging economies is further fueling market demand, as PPP projects typically mandate comprehensive bonding requirements.

Another significant growth driver is the evolving regulatory landscape across various industries. Regulatory authorities worldwide are imposing stricter bonding requirements on businesses, particularly in sectors such as construction, healthcare, and retail. These regulations are designed to safeguard public and private interests by ensuring that contractors and service providers fulfill their obligations. For instance, in the United States and the European Union, legislation mandates surety bonds for government contracts and licensed professionals, thereby creating a steady stream of demand. Furthermore, the proliferation of e-bonding platforms and digital underwriting processes is enhancing market efficiency, reducing administrative burdens, and making surety bonds more accessible to small and medium enterprises (SMEs).

Technological advancements are playing a pivotal role in reshaping the surety bond market landscape. The integration of artificial intelligence, blockchain, and cloud-based platforms is streamlining the bond issuance process, improving risk assessment accuracy, and reducing processing times. Insurtech innovations are enabling real-time monitoring of bonded projects, thereby minimizing fraud and enhancing transparency. These digital solutions are particularly attractive to enterprises seeking cost-effective and efficient bonding options. Moreover, the growing trend of online distribution channels is expanding market reach and enabling customers to compare and purchase surety bonds with greater ease, further accelerating market penetration.

From a regional perspective, North America continues to dominate the global surety bond market, accounting for the largest share in 2024, followed by Europe and Asia Pacific. The United States remains the single largest market, driven by a mature construction sector, strong regulatory frameworks, and a high concentration of large-scale infrastructure projects. Europe is witnessing steady growth due to increased investments in renewable energy and transportation, while Asia Pacific is emerging as a high-growth region, propelled by rapid urbanization and government-led infrastructure initiatives. Latin America and the Middle East & Africa are also experiencing upticks in demand, although at a more moderate pace, as regulatory reforms and economic diversification efforts gain traction.

Bond Type Analysis

The bond type segment in the surety bond market encompasses contract surety bonds, commercial surety bonds, court surety bonds, fidelity surety bonds, and others. Contract surety bonds represent the largest share of the market, owing to their critical role in construction and infrastructure projects. These bonds guarantee the performance and payment obligations of contractors, thereby protecting project owners from financial losses. The rising number of large-scale construction projects globally, coupled with stringent government regulations, is fueling the demand for contract surety bonds.

Graph and download economic data for ICE BofA BB US High Yield Index Option-Adjusted Spread (BAMLH0A1HYBB) from 1996-12-31 to 2025-12-01 about BB, option-adjusted spread, yield, interest rate, interest, rate, and USA.