Treasury probes trading in 7-year note

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Treasury probes trading in 7-year note
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) - The Treasury Department on Monday announced that it is examining trading last week in the 7-year note auctioned in January by asking any firm that held a large position in the security last Tuesday to report to the government. As a result, any market participant holding over $2 billion of the note on Feb. 21 must report its holdings. A Treasury official said that investors last week had to pay a premium in the repo market to borrow the 7-year note. There was two days of acute stress in the repo market that subsequently cleared up on Feb. 23, the official said. The department said it would not make its findings public. If any firm is found to have committed any irregularities, Treasury will discuss them with the firm's primary regulator, the official said.