SIFMA Reports Strong Growth in U.S. Fixed Income Market for Q3 2025
New York, Tuesday, 16 September 2025.
The U.S. fixed income market reached $47.8 trillion in Q3 2025, growing 5.5% annually. Treasuries lead with $28.7 trillion, reflecting investor preference for safety amid economic uncertainties.
Treasuries: The Safe Haven
In Q3 2025, U.S. Treasuries maintained their dominance in the fixed income market, accounting for $28.7 trillion, a 5.9% increase year-over-year. This growth highlights investors’ continued preference for secure investments during uncertain economic times [1].
Corporate Bonds and Commercial Paper: A Closer Look
Corporate bonds, the second-largest asset class in the fixed income market, reached $11.4 trillion, demonstrating a modest annual growth rate of 3.9%. Meanwhile, commercial paper exhibited the highest quarterly growth among asset classes, reaching $1.3 trillion, marking a 14.0% increase year-over-year [1].
Economic Implications
The robust performance of the fixed income market is reflective of the broader economic environment. The resilience of Treasuries suggests a cautious investor sentiment, likely influenced by geopolitical tensions and economic policy uncertainties. Despite these challenges, the U.S. economy exhibited a 3% GDP growth rate in the second quarter of 2025, surpassing expectations [2].
Anticipated Federal Reserve Actions
Looking ahead, market participants are keenly watching the Federal Reserve’s upcoming meeting on September 17, 2025, where a 25 basis points rate cut is anticipated. Such monetary policy actions are expected to influence the fixed income market by potentially lowering yields and affecting investor strategies [3].