U.S. Treasurys rallied on Wednesday as European government bond yields continued to plumb record lows and month-end buying helped send 30-year Treasury yields to their lowest levels in over a year.
Tensions in Ukraine added some safety demand for U.S. debt.
State Department spokeswoman Jen Psaki says Russia has sent additional columns of tanks and armored vehicles into its neighbor's territory. She says the incursions suggest a "Russian-directed counteroffensive is likely underway" in the contested eastern cities of Donetsk and Luhansk, The Associated Press reported.
Benchmark 10-year notes rose 11/32 in price to yield 2.36 percent, down from 2.39 percent late on Tuesday. Meanwhile, thirty-year bonds gained 1 3/32 in price to yield 3.108 percent, after touching 3.105 percent earlier, its lowest level since May 2013.
Bonds have gained since European Central Bank President Mario Draghi said last Friday that the bank was prepared to respond with all available tools if euro zone inflation dropped further. Investors took his comments to mean the ECB could start an asset purchase program or other stimulus measures.
Large demand from investors rebalancing portfolios this week is also adding a persistent bid to U.S. debt.
"There is a fairly fierce rally in the European sector which is dragging U.S. yields along with it and month-end buying is ferocious this month because it's a refunding month," said Aaron Kohli, an interest rate strategist at BNP Paribas in New York.