Dow futures slide, US 10-year yield drops 10 basis points on US-Iran tussle

• Dow futures drop 400 points on escalating US-Iran tensions. 
• US treasuries attract haven demand. The 10-year yield is down 10 basis points.

Risk aversion is in full flow this Wednesday morning in Asia, courtesy of the US-Iran conflict. 

The futures on the Dow Jones Industrial Average are currently trading at 28,121, representing a 400 point or 1.42% drop. The S&P 500 futures are also flashing red with a 1.5% drop. 

Meanwhile, Japan's benchmark equity index Nikkei is reporting a 600 point slide. 

The US bonds are attracting haven flows amid the slide in the equities. The yield on the 10-year Treasury note is currently shedding 10 basis points at 1.722%. 

The flight to safety has been triggered by Iran's retaliation to last Friday's US killing of a top Iranian military commander. The news of Iranian attack on US targets in Iraq hit the wires about 90 minutes ago, sending risk assets lower and strengthening the bid tone around oil and safe-haven assets like gold. 

CNN has confirmed that 10 missiles have hit US airbases in western Iraq. Further, Iran's guards have reportedly warned that any US aggression against Tehran will get a crashing response. 

Meanwhile, Pentagon has said that it will take all necessary measures to protect and defend US personnel, partners and allies in the region. 

If the US responds with a retaliatory attack, the risk assets will likely suffer a deeper drop, pushing havens like gold, Japanese yen, and Swiss franc higher.