A number of investment banks are prepared to step back from the trading of government bonds and reduce their activity in other interest rate related products due to a drop in revenues in key areas. The  banks are expecting that returns will be weaker going forward. There might very well be some restructuring in these business lines as opportunities stemming from European sovereign debt is reduced. The impact is being felt in a line of business which has become a large contributor for investment banks over the last few years. However, both regulation and technology have caused the business to be less profitable.

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