Treasuries Slide as Weak Yen Offers Another Reason to Shun Bonds
- Japan’s currency weakness raises specter of bond liquidation
- Worrisome inflation trends and Treasury auctions also weigh
Employees handle sheets of Japanese 10,000 yen banknotes at the National Printing Bureau Tokyo plant in Tokyo, Japan.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Treasuries fell, sending most yields to the highest levels in more than a week, as the latest slide in the value of the Japanese currency compounded bond investors’ anxiety.
The yen’s drop to a 38-year low versus the dollar coincided with the biggest of the Treasury’s note and bond auctions this month — $70 billion of five-year securities. Also Wednesday, Australian government bonds tumbled on hotter-than-expected inflation data — a day after the same happened in the Canadian bond market. Key US inflation data are due on Friday.