Is Cantor ‘Insider Trading’ on US Treasury Bonds?

Suppose you wanted to make a killing in the bond market?

The quick-and-dirty way to make a killing would be to go short on US Treasury bonds, then affect the budget negotiations on the debt ceiling in a way that affects the prices of Treasury bonds in favor of your financial position.

But if you were a budget negotiator, you would want to steer clear of any financial positions on Treasury bonds.


Because holding any sort of position – long or short – would put you at risk of being charged with insider trading.  You are an ‘insider’ in the negotiations, and consequently you steer clear of financial activities that may involve Treasury bonds – at least, for the duration of your time as a negotiator.

Unless you are Eric Cantor.

Dylan Ratigan reported today that Rep Eric Cantor holds a ‘short’ position on US Treasury bonds. In other words, Cantor’s position as a negotiator means that he can affect the price of Treasury bonds. The same bonds on which he has taken a short position.

Stop the presses, please.

Forget arguing about who gets to cut what.

We were told these were budget negotiations.

If Ratigan’s information is accurate then Cantor’s ‘budget negotiations are a bizarre form of market manipulation.

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