US Treasury Secretary Janet Yellen acknowledged on Monday that they have observed some decline in the Treasury market liquidity but noted that this situation was not unexpected given the increased volatility. 

Yellen further noted that Treasury market traders are not having difficulty in executing trades and reiterated that the US economy is healthy with a resilient financial system.

Market reaction

There was no immediate reaction to these comments and the benchmark 10-year US Treasury bond yield was last seen rising 0.3% on the day at 4.24%.