{"id":295372,"date":"2026-01-21T06:46:08","date_gmt":"2026-01-21T06:46:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/295372\/"},"modified":"2026-01-21T06:46:08","modified_gmt":"2026-01-21T06:46:08","slug":"global-bond-markets-shaken-by-japan-selloff-greenland-worries","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/295372\/","title":{"rendered":"Global bond markets shaken by Japan selloff, Greenland worries"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Japanese bond selloff spills over globally<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Long-dated U.S. yields post biggest two-day rise since May<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Greenland tensions add pressure on European defence spending<\/li>\n<\/ul>\n<p>LONDON\/NEW YORK, Jan 20 (Reuters) &#8211; A jump in Japan&#8217;s borrowing costs to <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/buyers-flee-japanese-debt-takaichi-hits-ground-spending-2026-01-20\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">all-time highs<\/a> rippled through major bond markets on Tuesday, colliding with \u200bfresh anxiety over tensions related to Greenland and underscoring investors&#8217; sensitivity to rising fiscal pressures and heavy debt loads.Japanese 10-year government bond \u200cyields <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/buyers-flee-japanese-debt-takaichi-hits-ground-spending-2026-01-20\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">surged almost 19 basis points<\/a> (bps) in two days, the sharpest rise since 2022, while 30-year yields posted their biggest daily jump since 2003  as investors braced for increased government spending.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japanese-selloff-greenland-fears-ripple-through-debt-ridden-global-bond-markets-2026-01-20\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fasia-pacific%2Fjapanese-selloff-greenland-fears-ripple-through-debt-ridden-global-bond-markets-2026-01-20%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>Prime Minster Sanae Takaichi called a <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japans-looming-election-heightens-chance-sales-tax-cut-2026-01-19\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">snap election<\/a> on Monday and is running on a platform of stimulus.<\/p>\n<p>&#8220;If there is a strong mandate following the election, that could open the door to more fiscal spending,&#8221; said Seema Shah, chief global strategist at Principal Asset Management.<\/p>\n<p>&#8220;It pulls a lot of global bond markets into a difficult story about debt and \u200cyou can see that in the rise in borrowing costs.&#8221;<\/p>\n<p>WORRIES OVER GREENLAND, THREAT OF MORE TARIFFS<\/p>\n<p>Bond investors were also grappling \u200bwith U.S. President Donald Trump&#8217;s tariff threats against European allies over Greenland, which may raise expectations that Europe will have to ramp up defence spending further through even more bond issuance.<\/p>\n<p>Talk of a <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/europe\/trumps-europe-tariff-threat-over-greenland-revives-talk-sell-america-trade-2026-01-19\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">&#8216;Sell America&#8217; trade<\/a> has also resurfaced, adding to selling pressure on Treasuries. The benchmark 10-year yield on Tuesday hit its highest since late \u200dAugust of 4.313% .Danish pension fund <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/danish-pension-fund-divest-its-us-treasuries-2026-01-20\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">AkademikerPension<\/a> said on Tuesday it was planning to sell its U.S. Treasury holdings by the end of the month, worth some $100 million.<\/p>\n<p>U.S. 30-year Treasury yields jumped around 8 basis points to 4.91% , as U.S. markets reopened after Monday&#8217;s holiday.<\/p>\n<p>Over the last two trading days, they&#8217;ve risen by 13 bps, their biggest two-day increase since last May, when China-U.S. trade tensions \u2060flared.<\/p>\n<p>The spread between U.S. two\u2011year and 30\u2011year yields, a barometer of investor unease about long\u2011term government finances, was on track for its biggest one\u2011day widening since \u200dAugust, yet remained well below the 19\u2011bp jump recorded during last April&#8217;s Liberation Day selloff.<\/p>\n<p>&#8220;Japan fiscal pressures are concerning, but markets have become more sanguine about U.S. deficits,&#8221; wrote Gennadiy \u200cGoldberg, head \u200cof U.S. rates strategy, at TD Securities in a research note.<\/p>\n<p>&#8220;While Japanese worries could continue to pass through given global correlations, the U.S. Treasury is doing everything in their power to avoid over-issuing long-end debt by keeping issuance shorter-dated.&#8221;<\/p>\n<p>Line chart showing change in yields for Japanese, German, UK and US 30-year bond in the last 12 months in basis pointsWHAT HAPPENED TO THE CALM?The bonds selloff ends weeks of relative stability in big markets outside of Japan that have <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/an-october-remember-bruised-global-bond-markets-2025-10-30\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">faced pressure<\/a> over the past year from concern about high debt.<\/p>\n<p>German 30-year bonds climbed as much as 6 bps to 3.53%, the highest in about two weeks, \u2060before coming down to 3.483%.<\/p>\n<p>UK 30-year \u2060yields , which often rise or fall \u200bmore than peers, were up around 6 bps at 5.22%, posting their largest daily increase since early January.<\/p>\n<p>In Europe, tensions over Greenland only highlighted <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/finance\/return-make-europe-great-again-trades-hinges-german-comeback-2025-12-18\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">spending pressures<\/a>, analysts said.<\/p>\n<p>&#8220;It again means that Europe needs to do more on defence,&#8221; said Barclays head of euro rates strategy Rohan Khanna.<\/p>\n<p>&#8220;Which the market is going to say: look, it eventually means more issuance and more debt \u200dsupply and hence weaker long-end bonds.&#8221;<\/p>\n<p>He added that tariffs would hurt growth, which was supportive for shorter-dated bonds.<\/p>\n<p>European bond markets were also sensitive to the JGB selloff because Japanese investors, big buyers of foreign bonds, might be tempted to move money into higher Japanese bond yields.<\/p>\n<p>&#8220;The question is, where are those flows going to come from now? Are they going to come more from the \u200bU.S. or more from Europe? And given the current geopolitical landscape, that could amplify the spillover \u200dto the U.S. a bit more,&#8221; said ING senior rates strategist Michiel Tukker.<\/p>\n<p>&#8220;You could argue it&#8217;s safer to stay in German Bunds than U.S. Treasuries.&#8221;<\/p>\n<p>JGB yields surge under PM Takaichi<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by \u200bAlun John, Amanda Cooper in London and Yoruk Bahceli; Additional reporting by Gertrude Chavez-Dreyfuss in New York; Writing by Dhara Ranasinghe; Editing by Bernadette Baum and Nick Zieminski<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf 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