Treasuries joined a selloff in global bonds and stocks pulled back as President Donald Trump’s Greenland-related tariff threats reignited trade tensions, testing market confidence after a rally fueled by investments in artificial intelligence.
Treasuries fell as trading of the securities resumed after a US holiday Monday on concern the Trump administration’s aggressive stance toward global peers will curb demand for American assets.
Longer maturities led losses, with the 30-year yield climbing four basis points to 4.88%. A gauge of the dollar fell to a two-week low.
Equity-index futures indicated losses for US shares when Wall Street reopens, while contracts indicated more losses for European stocks after their worst day since mid-November.
Asian shares slipped the most in more than a week. Investors increased bets on haven assets with gold and silver hitting records highs.
Trump’s threat to impose tariffs on eight countries opposing his bid to control Greenland, and pushback from Europe, has reignited volatility and driven investors toward precious metals.
The renewed trade tensions come against a backdrop of concerns over the Federal Reserve’s independence and Trump’s policies such as a cap credit-card rates in the US.
