U.S. Treasury Secretary: No Evidence to Suggest Bond Market Sell-Off is Sovereign Action, Tools Available for Response

BlockBeats News, April 15th, U.S. Treasury Secretary Yellen played down the recent selloff in the bond market, dismissing speculation that foreign entities were offloading their U.S. Treasury holdings. She also mentioned that the Treasury Department has tools to address any turmoil if necessary.

Yellen stated, "I do not believe that foreign investors are selling off." She pointed out that there was an increased foreign demand in last week's auctions of 10-year and 30-year U.S. Treasuries. Yellen reiterated her view that the bond market decline is primarily a result of deleveraging. She said, "I have no evidence that the downturn is caused by sovereign entities." She also stated, "We are far from taking action." However, if action is needed, "we have a large toolbox to deploy."

Yellen mentioned that this toolbox includes the department's old securities repurchase program, stating, "If we choose to, we can ramp up repurchase efforts." (Jinse Finance)