The Strategist

U.S. government debt yields fall amid situation in Ukraine



03/01/2022 - 10:48



The yield on ten-year US Treasury bonds declined by 0.07 percentage point.



Stockvault
Stockvault
During the Russian special operation in Donbass, the yield on 10-year US Treasury notes, which are regarded the benchmark and most popular government debt instruments in this nation, declined by 0.07 percentage points to 1.90 percent each year, according to CNBC.

In addition, the 30-year bond yield fell by 0.06 percentage points to 2.22 percent each year. This was owing to increased demand for the papers from investors who view US government debt as a safe haven investment.

Bond yields are inversely linked to their prices for new investors: the greater the buying price of the paper, the lower the yield (assuming that the coupon rate remains unchanged).

The influx of foreign investors into US assets, including government debt, coincided with a drop in the stock prices of companies from many countries, particularly those linked to Russia, following the European Union, the United States, the United Kingdom, and Japan imposing new sanctions against Russia, its banks, and companies.

source: cnbc.com