The figures suggest investors are unloading securities on to the Wall Street banks, which are having trouble reselling the bonds, according to Nomura Holdings Inc., one of the dealers. Treasuries were little changed this week, failing to extend a rally from earlier in the month, as a selloff in stocks eased and investor demand for the relative safety of government securities ebbed.
“Dealers are getting hit with this paper,” said John Gorman, the head of dollar debt trading for Asia and the Pacific at Nomura in Tokyo. “Their customers are bearish and selling.”