(Reuters) - MarketAxess Holdings' ( MKTX ) second-quarter profit rose 8% due to robust trading activity in high-grade corporate debt and government bonds, it said on Tuesday.

WHY IT'S IMPORTANT

The fixed income-trading platform's results offer an insight into the bond market, widely viewed as a more reliable indicator of recession than the stock market.

Shifting expectations of a rate cut have made it crucial to gauge such trends.

CONTEXT

Demand for investment-grade corporate debt has grown ahead of an expected cut later this year, as investors rush to lock-in current interest rates for years to come.

Geopolitical tensions and worries about the economy have also boosted appetite for safe haven assets like Treasuries and other government bonds.

MarketAxess ( MKTX ) lost some share of the junk bond market, however, since the extra yield offered by these securities fell short of investors' hopes.

BY THE NUMBERS

The company's net income was $65 million, or $1.72 per share, for the three months ended June 30, compared with $60 million, or $1.59 per share, last year.

The New York-based company's shares have lost 24% so far this year versus rival Tradeweb Markets' 18% gain.