Trump’s announcements sent multiple asset classes into turmoil. On Wall Street, Dow Jones futures plunged over 800 points, while investors fled long-term government bonds.
Here we go again: Wall Street, US Treasuries, and financial markets worldwide are once more being held hostage by US President Donald Trump’s statements.
The reaction across Wall Street and other asset classes has a sense of déjà vu, reminiscent of early April 2025, when Trump’s Liberation Day tariff announcement triggered a historic wave of sell-offs that eventually rippled across global markets, including the Milan Stock Exchange.
In the days following the April 2, 2025, announcement, the Dow Jones Industrial Average fell as much as 2,000 points.
A period of calm and recovery followed, which some analysts described as excessive, bubble-like, though there remained a persistent awareness of potential sudden moves by the US President. At the start of 2026, however, these moves have not only resurfaced, but intensified.
Among the latest market concerns are threats of new tariffs from the Trump administration against any country obstructing its plan to acquire Greenland.
On Saturday, via Truth Social, Trump threatened to impose 10% tariffs starting February 1, escalating to 25% from June 1 on all imports from eight NATO countries—Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland—unless " a deal for the complete and total purchase of Greenland " is concluded.
Wall Street was unable to react immediately to the US President’s comments, as markets were closed for the Martin Luther King Jr. holiday.
High tension with Macron’s France and Starmer’s UK reignites Trump anxiety on Wall Street
Today, as US markets reopen, all signs point to renewed volatility, also fueled by Trump’s attendance at the World Economic Forum in Davos, Switzerland, where he issued further threats.
In recent hours, new warnings have been directed at Emmanuel Macron’s France, which refused to participate in the Peace Board for Gaza reconstruction.
In response, Trump threatened 200% tariffs on French wines and champagnes, accompanied by sharp verbal attacks on Macron.
Tensions are also high with Keir Starmer’s United Kingdom, criticized for its plan to transfer sovereignty of the Chagos Islands to Mauritius. Trump described the decision as "an act of great stupidity," adding it represents "yet another national security rationale underscoring why Greenland must be acquired."
Trump’s remarks have rattled markets, particularly sending Wall Street tumbling today.
Dow Jones futures are down more than 700 points, and have fallen over 800 points in recent hours.
S&P 500 and Nasdaq futures are declining 1.6% and more than 2%, respectively.
It’s not just Wall Street: Trump’s moves slam 20- and 30-year Treasuries
However, the sell-off is not limited to equities.
The surge in geopolitical risk, combined with Trump’s familiar tool of tariff threats, is also weighing on US government bonds (Treasuries), particularly long-term debt. Yields on 20- and 30-year Treasuries have jumped as much as 9 basis points, climbing to 4.885% and 4.93%, respectively.
These long-dated Treasuries are the assets investors are most actively abandoning.
The sell-off in US debt has also spilled over into European sovereign bonds. Italy, France, Germany, Spain, and other euro-area government bonds have experienced rising yields, reflecting widening spreads.
Tension affected 10-year Treasuries as well, with yields climbing 6 basis points to 4.287%.
The domino effect was immediate, pushing up yields on BTPs, Bunds, Bonos, OATs, and other European government bonds.
Investor anxiety is driving BTP and OAT yields higher by 7 basis points to 3.56% and 3.52%, respectively, reinforcing—theoretically a consolation for Italy—the negative value of the 10-year Italy-France spread, a signal markets have been sending since early October 2025.
German Bund yields rose 4 basis points to 2.88%, keeping the 10-year BTP-Bund spread at 64 basis points, near levels lowest since 2008.
Spanish Bonos yields increased by 5 basis points to 3.27%, while UK Gilts were hit by sell-offs, with yields up 6 basis points to 4.48%.
Original article published on Money.it Italy 2026-01-20 11:57:05. Original title: Non solo Wall Street, Trump massacra questi bond. Investitori in fuga
