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It looks like banks might have rigged another huge market

Portia Crowe
Treasury Secretary Jacob Lew

(Mark Wilson/Getty Images)
Treasury Secretary Jacob Lew.

The market for US Treasury bonds may have been rigged.

That’s according to a federal antitrust lawsuit, first reported by Bloomberg's Alexandra Scaggs and Matthew Leising.

The plaintiffs — Cleveland Bakers and Teamsters Pension Fund, represented by law firm Quinn Emmanuel Urquhart & Sullivan — claim that Treasury dealers including Goldman Sachs, JPMorgan, and Morgan Stanley coordinated to manipulate primary market Treasury auctions.

They cite data from Rosa Abrantes-Metz, who has testified in other market-rigging cases and is an adjunct associate professor at New York University.

According to her analysis, 69% of a certain type of Treasury auction — for so-called reissued Treasuries — look suspicious.

Goldman Sachs and Morgan Stanley declined to comment.

JPMorgan could not immediately be reached for comment.

Read the full story over at Bloomberg »

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