U.S. Treasury prices rose on Thursday as investors sought a safe haven after news a Malaysian passenger plane came down over eastern Ukraine, an area of increasing conflict between the government and pro-Moscow rebels.
The move up in prices resulted in yields on the benchmark 10-year Treasury falling in their steepest one-day drop since early February, according to Reuters data.
Both sides in the Russia-Ukraine conflict denied involvement in the incident. If confirmed as a missile strike, the tragic incident would represent significant collateral damage in an increasingly bloody battle for control over Ukraine's territory.
President Barack Obama said the U.S. is working closely with Ukraine government officials to gain more details about the crash.
"We're working to determine whether there were American citizens were on board, that is our first priority," Obama said. "The united states will offer any assistance we can to help determine what happened and why."
The lost plane along the Russian-Ukraine border comes one day after the United States imposed a new round of sanctions on key players in Russia's economy because of what it views as Moscow's interference in Ukraine.
"It really surprised the market," said Kathy Jones, fixed income strategist at Charles Schwab in New York, in reference to the crash of the Malaysian airliner.