Yellen Addresses U.S. Bond Market Concerns Amid Selloff Fears

2 mins mins

Key Points:

Yellen downplays fears of foreign divestment
Treasury’s tools to stabilize markets
Potential impacts on crypto and financial strategies

On April 15, U.S. Treasury Secretary Janet Yellen downplayed fears of foreign divestment in U.S. Treasuries, stating there is no evidence of a selloff.

Yellen’s reassurances aim to stabilize market sentiment amid concerns of rising bond yields and liquidity risks.

Key Developments, Impact, and Reactions

Yellen addressed concerns over a bond market selloff, attributing declines to deleveraging. She stated foreign investors are not selling off, noting increased demand in recent treasury auctions.

Immediate Implications include the Treasury’s assurance to stabilize markets. Yellen emphasized the availability of tools to address potential turmoil, including repurchasing securities if needed. She noted that “We are far from taking action,” but the Treasury’s toolbox includes measures like ramping up securities repurchases if needed.

“I do not believe that foreign investors are selling off,” Yellen said, highlighting increased demand in recent auctions.

Bond Market’s Historical Context and Crypto Implications

Did you know? During a 1998 market selloff, the Treasury leveraged its repurchase program to mitigate volatility, similar to the tools mentioned by Yellen.

According to CoinMarketCap, Ethereum (ETH) is priced at $1,624.77 with a market cap of $196.09 billion. Its circulating supply stands at 120.69 million. Recent 24-hour trading volume reached $16.50 billion, marking a 12.24% change. The currency showed a 1.47% increase in 24 hours but has declined 49.65% over 90 days.

ethereum-daily-chart-87 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 00:08 UTC on April 15, 2025. *Source: CoinMarketCap*

The Coincu research team notes, the bond market’s stability impacts investors’ confidence, potentially prompting shifts toward crypto assets during volatility. Regulatory responses may influence long-term financial strategies, adjusting to changing investment dynamics in both traditional and digital markets.