10/11/2023 – 17:55
The Secretary of the Treasury of the United States, Janet Yellen, stated this Friday, 10, that she had not identified the impact of the cyber attack on the Industrial and Commercial Bank of China (ICBC) on the Treasuries market.
At a press conference, Yellen reported that she discussed the matter in a meeting with Chinese Vice Premier He Lifeng, in California. “We are working very closely with the Chinese companies, regulators in the United States, the Federal government, the FBI and the cybersecurity agency to deal with this,” he said.
For Yellen, the episode demonstrates the importance of maintaining direct communication with the Chinese, despite bilateral tensions.
The secretary also said that Beijing sees the recent devaluation of the yuan as a risk that could exacerbate capital outflows and commented that she does not know whether the government is intervening in the market. “It wouldn’t be surprising if China were selling Treasuries to alleviate pressure,” he highlighted.
Yellen acknowledged the “unusual pressure” on the long end of Treasuries. According to her, the Treasury had been increasing debt issuance in the long sector of the curve, but slowed down in the quarter. “This appears to have had a favorable impact,” she commented.
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