Risk aversion sends high yielders tumbling

(Reuters) - High yielding currencies fell sharply in volatile markets on Friday as an overnight sell-off in credit and stock markets led investors to pare risky carry trades.

The rise in risk aversion originally sent the low-yielding yen to a three-month high against the dollar and a six-week high versus the euro. But the Japanese currency's gains proved short-lived, in part due to soft retail sales data from Japan and also because of a recovery in European stock markets.


Read more at Reuters Africa

Treasury Two-Year Notes Advance the Most in Three Months on Risk Outlook

(Bloomberg) -- Treasury two-year notes rose the
most in three months as investors dumped riskier assets and a
government report showed orders for durable goods fell more than
forecast in May.

Asian and European stock markets and U.S. stock index
futures fell, and the perceived risk of owning U.S. corporate
bond rose to a 10-month high in the derivatives market, on
concern over the extent of investor losses arising from defaults
on subprime mortgage loans. Treasuries gained as dealers
prepared to bid on $13 billion of five-year notes in the
government's monthly auction of the securities today.


Read more at Bloomberg Bonds News