Freddie Mac shares plunge in Frankfurt - Business - Evening Standard
       

Freddie Mac shares plunge in Frankfurt

Freddie Mac shares plunged 62.5% on opening in Frankfurt this morning, providing a taste of things to come this afternoon in New York.

In Asia, bonds have been falling while shares rise as investors gain the heart to seek higher-yielding investments.

Japan's 10-year bonds fell by the most since May on news of the bail-out of the mortgage finance firms.

They followed down US Treasuries that fell the most in almost two months on the news.

The yield on the benchmark US 10-year note rose 14 basis points to 3.85% while the Japanese 10-year yield rose 11 basis points to 1.545%.

The yield on the similar-maturity Australian note gained 16 basis points to 5.78%.

Bonds investors in the US are encouraged by the news to seek higher yield bonds while in Asia, there are hopes the bail-out will support economic growth and lead to increased Treasury borrowing.

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