Treasuries slide after takeover of Fannie, Freddie
TOKYO (Reuters) - U.S. Treasuries fell sharply in Asian trading on Monday after the U.S. government seized control of 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 more financial market turmoil.
Benchmark 10-year Treasury prices fell, and yields rose to as high as 3.900 percent, up 19 basis points from 3.708 percent in late U.S. trading on Friday.
The rescue plan sent U.S. stock index futures soaring and triggered a sharp sell-off in safe haven government debt.
Worries that the takeover could lead to more government debt issuance also hurt Treasuries.
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