The Journal reports that some of the hedge funds that made fortunes betting on a housing bust in the US are now betting on big financial troubles in Japan. It’s not just the US and UK that are in the cross-hairs in terms of sovereign debt worries among the major economies.
USD/JPY looks to be reflecting those fears, trading at 92.75, the high for the recent move despite reported seasonal JPY demand. Very firm US bond yields are helping. 10s are at 3.88%, the high for the trend.