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Freddie Mac shares plunge in Frankfurt
Evening Standard 8 Sep 2008
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.
