NEW YORK, March 14 (Reuters) - U.S. Treasury yields fell sharply on Wednesday in step with government bonds in Britain and Germany as the Russian Foreign Ministry said it would retaliate after 23 of the country’s diplomats were expelled by Prime Minister Theresa May.
In addition to the expulsion, Britain said it would freeze Russian state assets in retaliation for a chemical attack on a former Russian double agent, May said on Wednesday.
The Russian Foreign Ministry responded later in the day, saying May’s statement was a flagrant provocation and that the British government had chosen confrontation with Russia.
The yield on Britain’s benchmark government bond was down 5.8 basis points at 1.43 percent. Its German equivalent was down 3.3 basis points to 0.586 percent.
The yield on the 10-year U.S. Treasury was down 4.4 basis points at 2.804 percent, the 30-year yield down 5.1 basis points at 3.050 percent. Three-year yields were down 2.5 basis points at 2.399 pct, two-year yields down 1.2 basis points at 2.250 percent. (Reporting by Kate Duguid Editing by Chizu Nomiyama)