Yellen rejects Roubini claim of ‘manipulation’ in Treasuries
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US Treasury Secretary Janet Yellen firmly rejects economist Nouriel Roubini's accusation of Treasury securities manipulation; Yellen assures there is no such strategy and it has never been discussed; Roubini and co-author Stephen Miran estimate that the Treasury's move last fall lowered 10-year Treasury yields by a quarter of a percentage point; A senior Treasury official criticizes the Roubini paper, pointing out factual mistakes about the volume of Treasury bill issuance; Treasury official says the calculation of how much issuance was shifted out of coupon-bearing securities to bills was incorrect and misleading; Treasury official also says the number provided in the paper is based on outdated predictions from the Treasury Borrowing Advisory Committee (TBAC) and leaves out the second quarter of this year when tax revenue allowed the Treasury to pay down bills by about $300 billion; Yellen supports the Treasury's approach to debt issuance as outlined by Joshua Frost, the Treasury's assistant secretary for financial markets; Yellen's comments were made during an interview on the sidelines of a gathering of Group of 20 finance chiefs in Rio de Janeiro.



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