19.01.202610:01:33UTC+00Bund Yields Dip as Tariff Threats Rekindle Safe-Haven Demand

Germany’s 10-year Bund yield declined to 2.82% as investors gravitated towards safe-haven assets amid renewed trade threats from US President Donald Trump. Trump has issued warnings about imposing additional tariffs on eight European countries unless the US is permitted to purchase Greenland. Among European nations, the UK and Germany, being the most significant exporters to the US, are particularly vulnerable to any escalation. Projections indicate that a 10% tariff could reduce GDP by about 0.1%, whereas a 25% levy might decrease output by 0.2% to 0.3%. Analysts have also raised concerns that any attempt to acquire Greenland could lead to profound and persistent harm to both NATO unity and transatlantic ties. In retaliation, the European Union is contemplating comprehensive countermeasures, potentially including tariffs up to €93 billion on US products.