Liquidity in the European and U.S. corporate bond markets continues to improve, trading activity is spreading to more bonds, and valuation gaps are expected to narrow.

Zhitong Finance APP has learned that liquidity in the U.S. and European corporate bond markets is improving as bonds issued by a growing number of blue-chip companies become more actively traded. Barclays strategists pointed out that corporate bond trading volume is gradually diversifying from a small number of popular bonds to a broader range of maturities, a trend expected to improve market pricing efficiency and narrow the valuation gap between more liquid and less liquid bonds.