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.