Safe Haven Assets Rally Following Russian Nuclear Doctrine Warning

LONDON (Reuters) – Safe-haven assets bounced sharply on Tuesday after a warning from Russia regarding its updated nuclear doctrine, aimed at informing potential adversaries of inevitable retaliation for any attack on the country or its allies.

Investors flocked to government bonds, the Japanese yen, and gold following the Kremlin's remarks, which followed Russian President Vladimir Putin's approval of the updated nuclear doctrine.

German government yields dropped as much as 8 basis points on the day to 2.292%. Gold reached a session high of approximately $2,626 an ounce, while the dollar fell as much as 0.9% against the yen, hitting 153.28.

An index of European aerospace and defense stocks, which had been down by 0.6% earlier, reduced some of those losses, trading with just a 0.2% decline on the day.