No. of Recommendations: 0
Recently, a question was raised in this forum about whether order books existed for bonds. I asserted such was the case. Someone else denied it. But here is a sample of “the book” for one of GE’s maturities. The book is “one-sided” (in that only the offer queue is shown by E*Trade). But that’s “the book” for that maturity.


Order Qty Min Price Yield Updated

Buy 10 10 98.500 6.111 12:11 pm
Buy 100 5 98.821 6.087 12:53 pm
Buy 57 5 98.850 6.085 12:11 pm
Buy 105 1 99.675 6.024 12:11 pm


Now comes the important question: How important would it be to have such information?

IMHO ('natch) almost zero. Being able to see the book is more of a distraction than anything else, because the book is likely to be highly manipulated if bond order queues are anything like stock order queues. The queue is mostly head fakes. Some underlying desk somewhere is playing games with prices. If they really wanted to move merchandise, they'd step in front of the current, best offer.

But what can't be faked, and what is of absolutely crucial importance and utility, is T&S. That's what the would-be investor should pay attention to, stocks or bonds.
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