(Bloomberg) — US bonds climbed after a senior White House official said there are signs Iran is preparing to imminently attack Israel, boosting demand for safe haven assets around the world.
The advance in Treasuries on Tuesday sent yields tumbling some seven basis points across all maturities to touch the day’s lows. Trading volumes in 10-year Treasury note futures skyrocketed, while bonds across Europe and the dollar extended gains. Riskier assets including stocks sank.
“The conflict in the Middle East could escalate further,” said Valentin Marinov, head of G10 FX strategy at Credit Agricole SA. “Depending on how significant any escalation is, the impact on the markets would likely go through the channel of risk sentiment,” spurring demand for safe havens, he said.
Treasuries and…
