TMTPOST -- Former US Treasury Secretary Janet Yellen said the recent selloff in U.S. Treasuries signals a troubling erosion of trust in American economic policy, rather than a sign of market dysfunction requiring Federal Reserve action. “I don’t think we’re seeing dysfunction – in the sense of liquidity completely drying up in the markets – but a pattern suggestive of a loss of confidence in U.S. economic policy,” Yellen said in an interview with CNBC on Monday (Apr 14). “It’s really very worrisome,” she added. Yellen, who stepped down in January, echoed concerns raised by market watchers over the unusual tandem of rising Treasury yields and a weakening dollar last week. That combination, she said, suggests “investors are beginning to shun dollar-based assets” and are “calling into question the safety of what is the bedrock of the global financial system, namely, U.S. Treasuries.”