The US government bond market is set for its biggest boom in trading volumes since 2004, as a combination of factors point to a rise in primary trading that will provide lucrative opportunities for new bond dealers and put the market share of established players at risk.

A report published today by consultancy Tabb Group says that the exponential growth in the most liquid, so called "on the run" market in treasury securities, has meant a rise in the amount of dealers entering the market.