Here's What We Learned From the Official Report on the 'Flash Crash' in U.S. Treasuries
The U.S. Treasury opines on the events of Oct. 15
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On Oct. 15, Wall Street watched in collective shock as the yield on the benchmark 10-year U.S. Treasury plunged before careering upward again on seemingly little news.
U.S Treasuries are meant to be one of the most liquid markets in the world, meaning they should in theory be impervious to big jumps in their price. Market participants have blamed a number of culprits for the day's wild swings. These include new regulations that make it more difficult or more expensive for large banks to make markets in a number of fixed-income securities, the rise of high-speed electronic trading in the U.S. Treasury market, and heavy one-way positioning by big investors.