U.S. fixed-income traders are set to receive higher bonuses in 2018 compared with last year, a study showed, after an increase in market volatility during the first quarter of the year helped banks grow their trading businesses.

Employees in the U.S. fixed-income industry could receive a 5 percent to 10 percent raise in bonuses this year, compared with 2017, compensation consulting firm Johnson Associates said in a report.

In November, the firm projected a decline of as much as 10 percent in fixed income traders' bonuses for year-end 2017.

Major U.S. banks posted a strong first-quarter as heightened volatility in February and March, after a long period of relative market inactivity, helped their trading desks.

Johnson Associates said it sees market volatility and interest rates as key incentive drivers for the year.

The quarterly compensation report also said bonuses for asset management is expected to rise only as much as 5 percent this year, down from nearly 10 percent the firm had projected for 2017 in November.

The firm had earlier said that for sectors like asset management, the momentum from 2017 may be difficult to replicate this year as fee and product pressures are expected to remain.