TREASURIES-U.S. Treasury yield curve flattens to 2-year lows

A widely watched gauge in the U.S. Treasury bond market fell to its lowest level in two years on Friday after a fire at an Ukrainian nuclear power plant complex seized by Russian forces renewed investor demand for safe-haven assets like bonds. Ukrainian authorities later said the fire in a building identified as a training centre was extinguished while U.S. Energy Secretary Jennifer Granholm said there was no indication of elevated radiation levels at Europe's largest nuclear plant. The news of the fire sent 10-year U.S. Treasury yields falling 14 bps in early Asian trading to 1.70% before yields bounced back partially to trade 3 bps down on the day at 1.81%.