Total traded volume across all assets spanning the fixed income universe was 6.802 trillion euros in the second quarter, down 4 percent from the same period a year ago, and was down 3.9 percent from the previous quarter.
The number of trades also fell by 3.8 percent from the same period a year earlier.
MarketAxess processes around two thirds of all fixed income transactions in Europe through its post-trade services via its subsidiary Trax. Just under 80 percent of the trading volume Trax processes is in government bonds.
Tighter financial regulation, banks scaling back their market-making capabilities and a plunge in global bond yields to their lowest ever levels have all helped reduce trading volume. By some measures, nearly $13 trillion of bonds around the world now have a negative yield.
The first quarter was the worst Q1 for investment banks since the global financial crisis, and according to preliminary estimates from data analytics firm Tricumen, Q2 revenues were expected to be nearly 40 percent lower still.