Treasuries Move To The Upside Amid Escalating Tensions With Russia

(RTTNews) - Following the modest upward move seen over the course of the previous session, treasuries saw further upside during trading on Tuesday.

Bond prices gave back some ground after an early advance but remained firmly in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.5 basis points to 4.379 percent.

The ten-year yield continued to give back ground after reaching a five-month intraday high during trading last Friday.

Treasuries continued to benefit from their appeal as a safe haven amid concerns about escalating tensions between the U.S. and Russia over the war in Ukraine.

After President Joe Biden gave Ukraine permission to attack Russian territory using U.S.-made long-range missiles, Russian President Vladimir Putin has signed a decree amending the country's nuclear doctrine.

Kremlin Spokesperson Dmitry Peskov said the updated doctrine says Russia "reserves the right to use nuclear weapons in the event of aggression with the use of conventional weapons against it or the Republic of Belarus, which creates a critical threat to sovereignty or territorial integrity."

"Aggression against the Russian Federation by any non-nuclear state with the participation or support of a nuclear state is considered a joint attack," Peskov added, according to NBC News.

Shortly before the Kremlin updated its nuclear weapons doctrine, Ukraine reportedly used U.S.-made long-range missiles to attack a Russian military facility in the Bryansk border region.

A lack of major U.S. economic data may lead to light activity on Wednesday, although trading may be impacted by reaction to developments overseas as well as speeches by several Federal Reserve officials.