Treasuries Close Notably Higher Amid Worries About Ukraine

(RTTNews) - Treasuries saw substantial volatility over the course of the trading session on Friday before ending the day significantly higher.

Bond prices turned lower in morning trading before rebounding strongly in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 7.6 basis points to 1.955 percent.

Before turning lower, the ten-year yield reached a high of 2.063 percent, its highest intraday level since late July of 2019.

The rebound in afternoon trading came as traders sought the relative safety of bonds amid concerns about a potential Russian invasion of Ukraine.

During a press briefing, White House national security adviser Jake Sullivan suggested a Russian invasion could occur during the Winter Olympics currently being held in Beijing.

Sullivan also said any Americans in Ukraine should leave the country in the next 24 to 48 hours, reiterating a plea President Joe Biden made on Thursday.

The U.K. Foreign Office has also urged British citizens to get out of Ukraine as Russia has amassed more than 100,000 troops near the border.

The higher close by treasuries also came following the steep drop seen on Thursday, when inflation data added to concerns about the outlook for interest rates.

Developments in Ukraine may impact trading next week, while traders are also likely to pay close attention to reports on producer prices, retail sales and industrial production as well as the minutes of the latest Federal Reserve meeting.