Treasuries Cut Down Two-Day Pullback as Putin Acknowledge Crimea Request
March 18, 2014 8:44 am
Treasuries cut down a two-day slide as President Vladimir Putin said he supported a request from Ukraine’s breakaway region of Crimea to join Russia, threatening to intensify a diplomatic standoff with the West.
Benchmark 10-year yields moved lower as investors sought havens. Russia should inked a treaty accepting Crimea’s accession, based from an order signed by Putin and published on a government website before he addresses lawmakers in Moscow today. Treasuries bolstered even as the Federal Reserve begins a two-day assembly that economists said will halt with a finalization to further scale back bond purchases.
“We are waiting for a press conference from Putin and I doubt Russia will calm things down,” said Patrick Jacq, a senior fixed-income strategist at BNP Paribas SA in Paris. “Risks remain elevated enough to at least prevent core markets from a massive selloff. On the basis of factors such as economic conditions, supply and demand, probably yields would have room to push significantly higher, but given the risk context, markets will remain relatively range bound.”
Benchmark 10-year yields dropped down one basis point, or 0.01 percentage point, to 2.69 percent at 8:13 a.m. London time, after soaring five basis points in the previous two days, Bloomberg Bond Trader data displayed. The 2.75 percent note due in February 2024 hiked 3/32, or 94 cents per $1,000 face amount, to 100 19/32.
Yields on the notes backslide to 2.61 percent on March 14, the weakest since March 4.
Russia’s action indicates that the country won’t retreat from annexing Crimea after the U.S. and European Union yesterday imposed penalties on some Russian officials and threatened further actions. The Japanese yen, which investors usually purchase for safety in times of turmoil, skyrocketed versus all of its 16 major counterparts recorded by Bloomberg.
The material has been provided by InstaForex Company – www.instaforex.com
Treasuries cut down a two-day slide as President Vladimir Putin said he supported a request from Ukraine’s breakaway region of Crimea to join Russia, threatening to intensify a diplomatic standoff with the West.
Benchmark 10-year yields moved lower as investors sought havens. Russia should inked a treaty accepting Crimea’s accession, based from an order signed by Putin and published on a government website before he addresses lawmakers in Moscow today. Treasuries bolstered even as the Federal Reserve begins a two-day assembly that economists said will halt with a finalization to further scale back bond purchases.
“We are waiting for a press conference from Putin and I doubt Russia will calm things down,” said Patrick Jacq, a senior fixed-income strategist at BNP Paribas SA in Paris. “Risks remain elevated enough to at least prevent core markets from a massive selloff. On the basis of factors such as economic conditions, supply and demand, probably yields would have room to push significantly higher, but given the risk context, markets will remain relatively range bound.”
Benchmark 10-year yields dropped down one basis point, or 0.01 percentage point, to 2.69 percent at 8:13 a.m. London time, after soaring five basis points in the previous two days, Bloomberg Bond Trader data displayed. The 2.75 percent note due in February 2024 hiked 3/32, or 94 cents per $1,000 face amount, to 100 19/32.
Yields on the notes backslide to 2.61 percent on March 14, the weakest since March 4.
Russia’s action indicates that the country won’t retreat from annexing Crimea after the U.S. and European Union yesterday imposed penalties on some Russian officials and threatened further actions. The Japanese yen, which investors usually purchase for safety in times of turmoil, skyrocketed versus all of its 16 major counterparts recorded by Bloomberg.
The material has been provided by InstaForex Company – www.instaforex.com