New York Fed President William Dudley said on Tuesday that the Treasury markets is a key for the implementation of monetary policy.

"The Treasury market plays a unique and crucial role in our economy, and in global financial markets more broadly. Treasury securities serve as a liquid investment and hedging vehicle for global investors, a ready source of collateral for many financial transactions and serve as a risk-free benchmark for other financial instruments. The Treasury market is important for the Federal Reserve's implementation of monetary policy," he said.