Citigroup Inc. is under investigation by German financial regulators for possibly manipulating eurozone bond markets, the government said Wednesday.
The regulatory agency, BaFin, is working closely with other European financial market regulators including Britain’s Financial Services Authority, which started a similar investigation earlier this year, BaFin spokeswoman Sabine Reimer told Dow Jones Newswires.
BaFin has been conducting its investigation into “possible market manipulation” since October, Reimer said. She said it was not known how long the probe might last, and would not give further details because it is ongoing. Citigroup spokeswoman Monika Schaller in Frankfurt declined to comment on the investigation by BaFin.
In early August, Citigroup Global Markets sold some 11.8 billion euros ($15.67 billion) in European government bonds on 13 different trading platforms in 11 different markets, causing prices to fall across the board.
The bank then bought back roughly 4 billion euros ($5.31 billion) in bonds at lower prices an hour later.