FX.co ★ US 10-Year Yield Hits Over 4-Month High

The yield on the US 10-year Treasury note surpassed 4.25% in post-holiday trading on Tuesday, marking its highest rate since early September. This surge occurred amid escalating tensions between Washington and Europe, rooted in President Donald Trump's controversial proposal to acquire Greenland. Over the weekend, Trump issued a warning that eight European nations opposing this plan could face a 10% tariff starting February 1, which could escalate to 25% by June 1 if an agreement for Greenland is not reached. European leaders condemned Trump's statements as unacceptable and are currently exploring possible retaliatory measures. Analysts have pointed out that Europe holds approximately $10 trillion in US bonds and equities, including substantial public sector investments, which could be utilized strategically amid these growing trade tensions. Market participants are also paying close attention to significant US economic data slated for release this week, which includes the PCE price indices, another estimate for Q3 GDP, S&P PMIs, and the University of Michigan consumer sentiment survey.