Trade failures of US bonds hit $456bn

However, some analysts and investors say that a slow and steady uptick in failed trades over the past few years is a consequence of the pressures on bank balance sheets.

Banks complain that increasing capital requirements makes them less willing to facilittate trading in US Treasuries, so it becomes harder for dealers and investors to find securities and trade failures increase.

"We have always had periodic, issue-specific increases in fails," said Louis Crandall, chief economist at Wrightson ICAP. "This one was large but the upward march ... we have seen over the past few years is a different phenomena and definitely worth keeping an eye on."