G10 rates businesses at the largest investment banks were hit hard over the first quarter, according to a new report – and incoming regulation could spell further gloom for this business line.

Revenues from trading G10 rates - which refers to trading in government bonds and interest-rate swaps - among 10 of the largest global investment banks fell 37% in the first quarter 2013 to $7.3bn, compared with $11.6bn in the first quarter 2012, according to data provider Coalition.