Safe-haven assets such as U.S. Treasurys and German government bonds may be rising amid increased geopolitical risks, but some analysts believe the gains aren't due to a flight-to-safety.
"It is not a rush to quality, but adjustment to very different sorts of economic expectations," Reorient research said in a note Monday.
Sovereign bond safe-havens have rallied, although some have attributed the move to climbing geopolitical risks, including the Russia-Ukraine conflict and fighting in Gaza, Syria and Iraq.
The 10-year U.S. Treasury yield was around 2.43 percent in early Asian trade Monday, down from around 2.63 percent in early July, while Germany's 10-year bond yield was around 1.054 percent late last week, down from around 1.265 percent in early July. The U.K. 10-year gilts were around 2.46 percent late Friday, compared with around 2.76 percent in early July. Bond yields move inversely to prices.
But the reasons for the yields' decline are different for each region, Reorient said.