Weiss Recovers From Warren Attack to Tackle Riddle of Treasuries

  • Ex-Lazard banker examines growing influence of speed traders
  • Last October's volatility spurs first U.S. review since 1990s

A year ago, U.S. regulators were spooked by a burst of rapid-fire trading in Treasuries. Over a 12-minute span that morning, the yield on the benchmark 10-year Treasury note plunged from 2.02 percent to 1.86 percent, then just as quickly shot back up. Treasury yields had fluctuated that much only three times since 1998, and each of those times there was an obvious catalyst. This time, there was no apparent cause.

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