1402 GMT - Worsening sentiment in fixed income leaves the currency market vulnerable to an unwinding of carry trades, MUFG Bank's Derek Halpenny says as yields in Treasurys and German Bunds hit multiyear highs. Carry trades, where investors borrow in low-yielding currencies to buy higher-yielding currencies, have performed well in a low foreign-exchange volatility environment, he says in a note. "Periods of low FX volatility always end with a bang and current market conditions are certainly consistent with an increased risk of that scenario materializing." High-yielding emerging-market currencies would suffer most while the Japanese yen and Swiss franc would outperform, he says.