Greek Elections Worry Markets

Elections for the European parliament in Greece has caused concern among investors, which is causing a ripple effect in the bond market. Worries that a potential SYRIZA win could trigger Grexit scenarios, investors are being led to more secure bonds. Ukrainian elections are also a source of concern.

U.S. Treasuries prices rose today on uncertainty ahead of elections in Greece and Ukraine elections, which overshadowed stronger-than-expected U.S. housing data and spurred safe-haven bids.

Traders sought safe-haven bonds on the belief that the elections could result in market volatility, including renewed worries of a Greek exit from the euro zone and the potential for greater geopolitical concerns surrounding Ukraine.

"European parliamentary elections and Ukraine elections are key events in the near term which could be driving people into the safety of U.S. Treasuries," said Robbert van Batenburg, director of market strategy at Newedge USA, LLC, in New York.

Batenburg said that if Greece's leftist SYRIZA party wins, its leaders could reject the government's austerity policies and threaten to leave the euro zone. If pro-separatist voters in eastern Ukraine fail to participate, he said, it could stoke geopolitical tensions between Russia and Ukraine. The European Union's parliamentary election kicked off on Thursday. SYRIZA  performed strongly in key races in the first round of local elections on May 18.