TY - JOUR T1 - Trading Costs in Three U.S. Bond Markets JF - The Journal of Fixed Income SP - 39 LP - 48 DO - 10.3905/jfi.2003.319345 VL - 13 IS - 1 AU - Sugato Chakravarty AU - Asani Sarkar Y1 - 2003/06/30 UR - https://pm-research.com/content/13/1/39.abstract N2 - Newly available transaction data are available for comparison of trading costs in the U.S. Treasury bond market with U.S. corporate and municipal bond markets. The mean bid-ask spread per $100 par value is estimated at 23 cents for municipal bonds, 21 cents for corporate bonds, and 8 cents for Treasury bonds. Maturity, trade size, and credit ratings are key determinants of the bid-ask spread. After controlling for credit risk, the bid-ask spread is not statistically different between corporate and Treasury markets but it is higher for municipal bonds relative to Treasuries. ER -