US 10-Year Yield Hits Over 4-Month High
The yield on the US 10-year Treasury note climbed above 4.25% in post-holiday trade on Tuesday, reaching its highest level since early September as rising tensions between Washington and Europe over President Donald Trump’s proposal to purchase Greenland proposal hurt confidence in US assets. Over the weekend, Trump warned that eight European countries opposing the plan could face a 10% tariff from Feb. 1, rising to 25% on June 1 unless a deal for Greenland is reached. European leaders condemned the remarks as unacceptable while considering possible options for retaliation. Analysts cautioned that Europe holds roughly $10 trillion in US bonds and equities, including significant public sector holdings, which could be leveraged amid the escalating trade tensions. Investors are also focused on key US data due this week, including the PCE price indices, another Q3 GDP estimate, S&P PMIs and the University of Michigan consumer sentiment survey.
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