Yellen strongly denies Roubini's manipulation accusation

U.S. Treasury Secretary Janet Yellen has hit back at economist Nouriel Roubini’s accusations of manipulation regarding U.S. bond issuances. U.S. Treasury Secretary Janet Yellen has flatly denied economist Nouriel Roubini’s accusation that her department manipulated the issuance of Treasury bonds in a way that would lower real borrowing costs across the economy. In an interview with Bloomberg News, Yellen said that Roubini’s argument in an article published on Tuesday suggested a strategy aimed at easing financial conditions. “I can assure you 100 percent that there is no such strategy. We have never, ever discussed anything like that,” Yellen said. The article was a reprise of recent attacks on Yellen by some Republican politicians. The article emphasized that the Treasury had reduced its issuance of long-term bonds in November and instead focused more on short-term bonds. Opponents of Yellen’s arguments say the move is intended to lower long-term borrowing costs and help the economy ahead of the November election. That argument has not gained traction among bond dealers and strategists, and Joshua Frost, the Treasury official who oversees debt issuance, said this month that the department’s actions were within market expectations.