%0 Journal Article %A Sugato Chakravarty %A Asani Sarkar %T Trading Costs in Three U.S. Bond Markets %D 2003 %R 10.3905/jfi.2003.319345 %J The Journal of Fixed Income %P 39-48 %V 13 %N 1 %X 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. %U https://jfi.pm-research.com/content/iijfixinc/13/1/39.full.pdf