Treasuries Rally as Geopolitical Events Create Demand for Haven

(Bloomberg) -- Treasuries rallied across maturities after the shooting death of Russia’s ambassador in Turkey and as a truck rammed into crowds in a Berlin market.

The 10-year U.S. yield fell six basis points to 2.53 percent at 4:29 p.m. in New York, according to Bloomberg Bond Trader data. Treasuries surged after Russia’s ambassador was shot in Ankara. Debt pared gains after Janet Yellen said the U.S. job market was the strongest in nearly a decade, only to rally again after a truck mounted the pavement and rammed into crowds at a Berlin Christmas market, killing nine and injuring dozens. Yields fell across almost all developed markets tracked by Bloomberg.

• A man wearing a suit shouted “don’t forget Aleppo,” after shooting the ambassador, who died from his injuries, according to the Russian Foreign Ministry
• A Berlin police spokesman says that a suspect had been arrested and authorities are investigating the motive
• “After years of a slow economic recovery, you are entering the strongest job market in nearly a decade,” Yellen told graduating students at the University of Baltimore on Monday, adding “there are also indications that wage growth is picking up”
• Markit Economics U.S. preliminary services purchasing managers’ index for December is 53.4, missing estimate of 55.2; reading above 50 signals expansion
• U.S. economic calendar this week includes existing home sales, gross domestic product, personal consumption, durable goods orders, new home sales and University of Michigan sentiment