CHICAGO/NEW YORK, Feb 29 (Reuters) - CME Group Inc. said there was no evidence of mistaken trades in U.S. Treasury bond futures on Wednesday, something that some traders blamed on the start of a sell-off in the bond market earlier.
Large, erroneous trades are known as “fat finger” trades.
“No issues have been reported, have not called any trades into question and have no reports of error trades,” a spokesman for CME Group, the biggest U.S. futures exchange operator, said.
Shortly after 10 a.m. EST (1500 GMT), there was a surge in selling in 10-year Treasury bond contracts. The unusually large volume of sales, which totaled more than 30,000 contracts according to traders, raised speculation that at least one “fat finger” trade had occurred.
Within minutes of the flood of selling, March Treasury note futures erased earlier gains and touched a session low of 131-1/32. They last traded down 14/32 on the day at 131-8/32.
Some analysts downplayed the likelihood of mistaken trades for the market turnaround in Treasuries, and attributed the sell-off on disappointment that Federal Reserve Chairman Ben Bernanke did not hint at more bond purchases to stimulate the economy during his testimony before a Congressional panel.
Bernanke began his testimony on the economy and monetary policy before the U.S. House of Representatives Financial Services Committee at about 10 a.m., just prior to the bond market sell-off.
CME Group operates the Chicago Board of Trade, the Chicago Mercantile Exchange and the New York Mercantile Exchange.