Putin threatens nuclear action against U.S. as Ukraine conflict escalates
- New figures revealed a decrease in construction and building permits in the U.S. for October, with rising mortgage rates affecting numbers.
- Putin's warning reflects heightened tensions and a new doctrine considering the use of nuclear weapons in response to threats against Russia.
- This escalation in rhetoric and military action has significant implications for U.S.-Russia relations and overall market stability.
On November 26, 2024, tensions between Ukraine and Russia intensified, leading U.S. Treasury yields to slip as investors sought safe-haven assets amidst the geopolitical turmoil. The yield on the 10-year Treasury decreased by more than 2 basis points to 4.392%, while the 2-year Treasury fell slightly to 4.282%. The decline in yields came as new housing figures for October revealed a concerning drop in construction, exacerbated by rising mortgage rates. Amid this backdrop, Russian President Vladimir Putin issued a stark warning to the United States, indicating that Russia's new military doctrine would consider the use of nuclear weapons should they feel critically threatened, particularly in response to U.S. support for Ukrainian actions against Russian territory. This statement follows recent allegations that Ukraine successfully struck a Russian border city with U.S.-made missiles, heightening the likelihood of further military escalation. As the geopolitical landscape shifts, analysts note that the U.S. financial markets are closely monitoring potential changes in government, particularly regarding Trump's nominations for Treasury Secretary, which could have significant implications for market stability and policies moving forward. The upcoming economic data, including trends across the manufacturing and services sectors, will also be crucial in assessing the strength of the U.S. economy as it navigates these complex international relations.