UNITED STATES, WASHINGTON (TRADING SIGNAL GROUP) – Eurozone bond yields fell sharply on Thursday as demand for safe-haven assets surged after Russia launched its military operation in Ukraine.
The yield on German 10-year bonds, the benchmark for the block, fell 8 basis points to 1.139%, a three-week low.
Yields on 2-year and 30-year bonds fell by 7 basis points.
Yields on most of the other 10-year bonds in the block are also down by 5-8 basis points.
Russian President Vladimir Putin on Thursday authorized a military operation in Ukraine.
The Ministry of Defense of the Russian Federation stated that it disables military infrastructure, air defense facilities, military airfields and aviation of the Ukrainian army with high-precision weapons, but does not strike cities and civilians, Russian agencies reported.
As the news weighed heavily on risk sentiment, the spread on the iTraxx European Crossover Index, which measures the cost of insuring a basket of sub-investment grade European bonds, rose 27 basis points to 376.9 basis points, the highest since October 2020.