The US Treasury market is progressively adopting trading conventions akin to those of the equity market, easing a long-standing pricing time mismatch that has frequently caused friction for fund managers. According to the latest research from the Federal Reserve Bank of New York, the share of Treasury transactions occurring at 4:00 PM New York time has continued to climb over the past several years.

This trend accelerated notably after 2021, when Bloomberg Index Services Ltd shifted the closing pricing time for its US bond benchmark index from 3:00 PM to 4:00 PM New York time. This change represents part of a long-term evolution in which the bond market is converging with the stock market's operational rhythm.

The US equity market operates from 9:30 AM to 4:00 PM New York time. Unlike stocks, US Treasuries trade over-the-counter without an exchange-mandated closing bell. However, the pricing rules set by index providers effectively create a closing mechanism similar to that seen in the equity market.

Researchers Michael J. Fleming and Or Shachar wrote: "Index pricing conventions have a substantial impact on when US Treasury trading actually takes place." Bloomberg Index Services is a subsidiary of Bloomberg LP.