The Investment Dealers Association reports that total trading of secondary market debt was weaker in the third quarter.

Government of Canada debt trading fell 17% in the third quarter to $815 billion. Trading was flat from the third quarter of 2000, but the daily average of $13 billion is down 40% from its all-time high in 1996. Government bond issuance fell in the quarter, the third consecutive slide. Net $3.4 billion was redeemed in the quarter. And new issue activity was down 24% from the second quarter.

On the corporate side, trading activity fell 11% in the quarter to $49 billion, from an all-time high of $55 billion in Q2. Issuance was also down 43% from the previous quarter, at a paltry $7 billion. On the year to date, commercial paper trading is down about 9%, and issuance is down 4% from the previous year.

Total provincial issuance rose 4% quarter over quarter, but this is down 53% from the previous year. Although the IDA notes that the recent downturn could help spark new issues.

Municipal trading was relatively strong, although it forms a small part of the market, at $3.4 billion, or 1% of trading.