Greenland shock feeds a broader ‘sell America’ trade
The yield spike forms part of what one strategist described as a broad rotation out of US assets after Trump threatened 10% tariffs on eight European countries as part of his Greenland campaign.
“This is ‘sell America’ again within a much broader global risk off,” Krishna Guha, head of global policy and central banking strategy at Evercore ISI, wrote.
“On the other side of trade, deficits, and trade wars, there are capital and capital wars,” Bridgewater Associates founder Ray Dalio told CNBC. “Maybe there’s not the same inclination to buy … U.S. debt and so on.”
Mortgage slowdown fears despite rate reprieve
Just days earlier, Freddie Mac said the average 30‑year fixed rate tumbled to 6.06% by January 15, nearly a full percentage point below the 7.04% level a year earlier, with the 15‑year fixed slipping to 5.38%.
The 30‑year average has not been that low since September 2022, when it was still climbing on the back of aggressive Federal Reserve hikes.
