U.S. Yield, Yen Correlation Rising on Risk, Gain Capital Says

The correlation between the U.S. Treasury 10-year note yield and the Japanese yen has increased to more than 90 percent as investors flee risk, according to Eric Viloria, a currency strategist at Gain Capital Inc.

“It’s a risk play,” said Viloria, who works for the online currency trading firm in New York. “Risk aversion is driving yields lower because people are going into bonds. It’s a safe haven, and the yen is seen as a safe haven.”