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Ukraine Risk Roils Treasuries to Commodities as Tensions Rise

  • Russian bonds, stocks, ruble lead declines in emerging markets
  • Strategists now factor war risk alongside Fed hikes, inflation
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How Will Berlin, Washington Act Next on Russia, Ukraine?
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Russia’s troop buildup on the Ukraine border is now being cited by strategists as one of the main threats to global markets, even though President Vladimir Putin has repeatedly said he currently has no plans to attack. 

Local bond, currency and stock markets in Moscow and Kyiv have already taken a hit, but an escalation could spark a rush for the exits. While penalties against Russian commodities have not been discussed by the U.S. and Europe, a conflict could destabilize natural-gas and wheat prices. Appetite for U.S. Treasuries is growing as some investors shift their holdings into the safest assets.