The Treasury Department plans to temporarily ban Nomura Holdings from participating in government bond auctions after the company admitted to manipulating the bond futures market, people familiar with the matter said.
The ministry plans to suspend Nomura from Japan’s main group of government bond dealers for a month starting Tuesday, the people said, asking not to be identified. An announcement will be made later Friday, the people added.
The move is another setback for Nomura after the revelations prompted several companies, including Toyota Finance, to take their bond insurance operations elsewhere. As one of the biggest players in government bond auctions, Nomura’s suspension will increase the burden on other bidders.
