Following scandals involving the LIBOR market and the
Forex market, it now appears that the US Treasury market (the world’s largest
bond market) may have been rigged:
The WSJ piece states –
“At the center of
these actions are questions about whether bank traders have colluded to bolster
their own profits by depressing prices at U.S. government debt auctions.
…
The accusations
come on the heels of investigations into alleged bank misconduct in everything
from foreign-exchange markets to interest-rate benchmarks affecting trillions
of dollars of securities, cases that have resulted in billions of dollars in
fines.”