China Evergrande : Yen slumps past 111 per dollar as U.S. Treasury yields soar
The yen lost about 0.2% to 111.21 per dollar, a level not seen since July 2.
It weakened about the same amount to 130.07 to the single currency after earlier touching 130.115 for the first time since Sept. 14.
The yen also weakened ahead of a ruling party election on Wednesday that will decide Japan’s new prime minister, with frontrunners Taro Kono and Fumio Kishida both backing more stimulus to support the pandemic recovery.
While benchmark 10-year Japanese government bond yields <JP10YTN=JBTC > remain pinned near zero by the Bank of Japan’s yield curve control policy, equivalent U.S. Treasury yields have soared to a three-month high, touching 1.516% overnight.
German 10-year bund yields, while below those on JGBs, have catapulted to the highest since the start of July at minus 0.191% from as low as minus 0.340% just a week…