- The crisis in Ukraine and sanctions against Russia stoked the cost of commodities, particularly oil, harming the economy and boosting demand for sovereign bonds, extending a global selloff.
- Following Russia's invasion of its neighbour, president Biden referred to Putin as a dictator in his state of the union address. Following the drop in Wall Street stocks on Tuesday, an Asian equity index sank almost 1%.
- Australian and New Zealand debt joined a global fixed-income rally due to demand for safe havens. Treasury yields held much of the gains, with the 10-year yield hovering around 1.74%. The price of gold and a barometer of the dollar stayed stable.
- Brent oil hit a high of $110 per barrel. As sanctions against resource-rich Russia grow, steps to tap reserves have failed to alleviate supply concerns. A commodity index hit a new high for the first time since 2009. The war poses a threat to already constrained energy, food, and metal flows.
- Expectations for how quickly the Fed would raise interest rates are being tempered by economic threats. Any chance of a half-point march lift-off has been priced out by the markets. Rate-hike bets have also been scaled back by traders in the UK and Europe.
