(Bloomberg) –Government bonds surged along with other haven assets amid rapidly escalating tensions in Russia’s war against Ukraine.
The yield on US Treasuries fell at least six to seven basis points across the curve as a report showed Ukraine had carried out its first strike within Russian territory with Western supplied missiles — just days after the US gave it permission for limited use of the weapons.
That coincided with Russian President Vladimir Putin’s decision to sign an updated nuclear arms doctrine — pledged in September — that allows the country to expand its use of atomic weapons.
The yen, a traditional haven currency, climbed 0.8% against the dollar, while the Swiss franc rose to strongest level against the euro since August. The German 10-year yield slumped as much as 10 basis points to 2.27%, the lowest since late October.
“It’s purely geopolitical,” said Neil Jones, a managing director at TJM Europe….
