U.S. Treasury Secretary Yellen Downplays U.S. Bond Sell-Off, Believes Bond Market is Undergoing "Normal Deleveraging"

BlockBeats News, April 9th, U.S. Treasury Secretary Yellen played down the U.S. Treasury bond sell-off, stating that it is not systemic. "The current market is experiencing a deleveraging turmoil," Yellen said, noting that he often witnessed this situation during his hedge fund career. "This is the fixed income market. Some very large leveraged players are suffering losses and have to deleverage."

In the past few days, long-term treasuries have been hit hard in the U.S. bond market sell-off, despite the stock market also falling — contradicting its typical safe-haven role. So far this week, the U.S. 30-year Treasury bond yield has soared by about 0.5 percentage points. He said, "I don't think this is a systemic issue. I think the deleveraging underway in the bond market is a disturbing but normal process." (Oriental Fortune Network)