Government Bonds Rally Around the World After Jetliner Shooting - Bloomberg

Government Bonds Rally Around the World After Jetliner Shooting - Bloomberg:



"Government bonds rallied around the world, with a gauge of the debt climbing to a 14-month high, as the shooting down of a Malaysia Airlines plane in Ukraine drove demand for the safest assets.



An index of sovereign debt climbed to the highest level since May 2013 yesterday, based on Bank of America Merrill Lynch data. The securities have returned 4.3 percent this year, recouping a loss from 2013. The aircraft was shot down over eastern Ukraine, killing all 298 people on board. Demand for havens assets was also boosted as Israel sent soldiers and tanks into Gaza. Treasuries trimmed gains in Asian trading today.



“There’s geopolitical risk in Ukraine and the Middle East,” said Kim Youngsung, head of overseas investment in Seoul at South Korea’s Government Employees Pension Service, which manages the equivalent of $3.9 billion. “People think the stock market won’t be a safe place to invest. They turned to bonds.”"



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