US Treasuries slide after takeover of Fannie, Freddie
September 8th, 2008 | by admin |TOKYO, Sept 8 (Reuters) - U.S. Treasuries fell sharply inAsian trading on Monday after the U.S. government seized controlof mortgage finance companies Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac(FRE.N: Quote, Profile, Research, Stock Buzz) to bolster the U.S. housing market and prevent morefinancial market turmoil.
Benchmark 10-year Treasury prices fell, and yields rose to ashigh as 3.900 percent <US10YT=RR>, up 19 basis points from 3.708percent in late U.S. trading on Friday.
The rescue plan sent U.S. stock index futures soaring andtriggered a sharp sell-off in safe haven government debt.
Worries that the takeover could lead to more government debtissuance also hurt Treasuries.
