US bonds rally on reports of Middle East missile strike

A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023./ REUTERS/Kevin Lamarque/File Photo

SINGAPORE: US Treasuries rallied sharply as news reports of explosions in Iran and a possible Israeli missile strike sent investors scurrying into safe assets in Friday morning Asia trade.

Benchmark 10-year yields fell more than 10 basis points to 4.5384%, recouping much of the week's selling. Two-year yields dropped 9 bps to 4.8985%.