U.S. Treasury debt prices rose on Monday as Russia's military intervention in Ukraine boosted demand for safe-haven investments like U.S. government debt, pushing yields down to their lowest in almost a month.
Russia took a financial hit over its military intervention in neighboring Ukraine, with its stocks, bonds and currency plunging as President Vladimir Putin's forces tightened their grip on the Russian-speaking Crimea region.
Tension in the region drove Treasury volume up overnight and sent 10-year yields to 2.5920 percent, the lowest since Feb. 4.
If the conflict continues unabated, yields could fall to 2.45 percent, traders said.
"There are bigger ramifications if this doesn't seem like it is something that will get resolved any time soon,'' said Matt Duch, a portfolio manager with Calvert Investments in Bethesda, MD.
"Given the volatility we saw in emerging markets, it could push investors to the sidelines,'' said Duch.