Treasuries Close Nearly Unchanged After Initial Spike

(RTTNews) - After skyrocketing early in the session, treasuries showed a substantial pullback over the course of the trading day on Thursday.

Bond prices pulled back well off their early highs, ending the session nearly unchanged. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 1.969 percent after hitting a low of 1.856 percent.

Treasuries initially benefited from their appeal as a safe haven as the fears of a Russian invasion of Ukraine became a reality, with Russian Vladimir Putin declaring war on the neighboring country late Wednesday night.

Rather than focusing on contested regions in the eastern part of the country as some had expected, Putin has launched an all-out invasion of Ukraine.

Reports of explosions and Russian troops crossing the border have come in from across Ukraine as part of what could be a prolonged campaign.

U.S. President Joe Biden and other world leaders have condemned Russia for the "unprovoked and unjustified attack," which Biden predicted would cause a "catastrophic loss of life and human suffering."

"Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way," Biden said in a statement. "The world will hold Russia accountable."

Treasuries gave back ground over the course of the session, however, as traders reassessed the global economic impact of the conflict.

Later in the trading day, Biden announced what he called a new "devastating" package of sanctions against Russia, although the sanctions were not seen as "crippling" as some had expected.

The president said the new sanctions will limit Russia's ability to do business in dollars, euros, pounds and yen, stop Russia's ability to finance and grow their military and impair their ability to compete in high-tech 21st century economy.

However, the new package does not include cutting Russia off from SWIFT, a global network that connects financial institutions around the world, or direct sanctions against Putin.

A pullback by the price of crude oil may also have reduced concerns about the impact of the war, with crude for April delivery ending the day up a relatively modest $0.71 at $92.81 a barrel after topping $100 a barrel for the first time since 2014.

Reports on durable goods orders, personal income and spending and pending home sales may attract some attention on Friday, although traders are likely to keep a closer eye on the latest news out of Ukraine.