Trading Fast and Slow Fuels Turbulence in Treasury Market
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The chasm in the Treasury market between microsecond traders and comparatively slow-poke humans is making it harder to navigate the $12.7 trillion business, according to Tabb Group LLC.
What’s more, it may have helped fueled the extreme volatility on Oct. 15, when Treasury yields plunged and then bounced back, covering a 37-basis-point range in 12 minutes, the research firm said in a report.