JPMorgan's global market strategy team found that the recent increase in cross-asset volatility does not necessarily mean that trading liquidity is deteriorating synchronously across all markets. The most significant deterioration is seen in the cash US Treasury market. The report shows that market depth for 10-year cash US Treasuries has declined significantly in recent weeks, approaching the lows seen during the outbreak of the US-Iran conflict in March 2026. In contrast, the liquidity deterioration in the S&P 500 e-mini, Euro Stoxx 50 e-mini, corporate bond ETFs, and even oil prices, which have recently been affected by geopolitical risks, has been relatively limited.
