* NATO says Russian troops massing at Ukraine border
* Ten-year yield at lows not seen since May
* U.S. yields beckon
By Michael Connor
NEW YORK, Aug 6 U.S. Treasuries prices shot up
on Wednesday as tensions over Ukraine sapped global financial
markets and left 10-year Treasury note yields at lows not seen
Benchmark 10-year notes, which had traded above
2.50 percent on Tuesday, were off 10/32 in price to yield 2.44
percent. That is a level last seen on May 28, according to
Thirty-year Treasury bonds were up 22/32 in
price to yield 3.24 percent after touching a yield high on
Tuesday of 3.33 percent during trading shaped by bullish U.S.
Investor concerns about the timing of Federal Reserve
interest-rate hikes were receding, with fat differentials
between European and U.S. yields proving increasingly alluring,
portfolio managers said.
"The market is not so much, 'Oh my God, the Fed will be
raising rates soon.' That is now off the table for a while,"
said Wilmer Stith, co-manager of the Wilmington Broad Market
Bond fund in Baltimore, Maryland.
"Russia possibly being more aggressive over Ukraine is now
on the table," Stith said. "U.S. Treasuries are very attractive
on a yield basis with German 10-year bonds at 1.1 percent and
ours now at 2.44."
After NATO said Russian troops were massing near Ukraine's
border, European stocks fell 1.4 percent, while MSCI's
world equity index was down 0.5 percent. Wall
Street opened down.
German 10-year bond yields fell 7 basis points to a record
low of 1.10 percent, on track for their biggest daily drop in
nearly a year.
(Reporting By Michael Connor in New York; Editing by Nick