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U.S. Treasury yields rose on Tuesday as investors weighed tariff threats from Washington that renewed the threat of a trade war with Europe.
The benchmark 10-year Treasury yield was last up nearly 6 basis points at 4.287%. Longer-term 20-year and 30-year Treasury yields rose, adding 9 basis points to trade at around 4.885% and 4.93%, respectively.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Trump announced this on Saturday eight European allies face rising tariffsIt will start at 10% on February 1 and rise to 25% on June 1 unless a deal is reached that would allow Washington to “buy” Denmark’s semi-autonomous territory of Greenland. Tariffs are likely to target Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, Trump said.
Trump too on Tuesday threatened 200% duty on French wine and champagne after French President Emmanuel Macron. reported his reluctance to join the Gaza “Peace Council”.
There are European leaders described France has called Trump’s new tariff threats “unacceptable” and is reportedly considering countermeasures, prompting the European Union to use the EU’s strongest economic countermeasure.
Trump too Another NATO ally was targeted Ahead of the World Economic Forum in Davos this week, London protested a decision to cede sovereignty over the Chagos Islands to Mauritius. The islands include Diego Garcia, home to a joint US-UK military base. The Trump administration previously supported Treaty of Great Britain with Mauritius.
Bond markets were closed on Monday for Martin Luther King Day.
— CNBC’s Holly Ellyatt contributed to this article.