22.01.202601:47:57UTC+00US 10-Year Yield Falls on Easing Tensions

On Thursday, the yield on the 10-year US Treasury note fell by approximately 5 basis points, settling at 4.25%. This decline followed a period of five-month highs, as geopolitical and trade tensions between the US and Europe regarding Greenland showed signs of easing. President Donald Trump dismissed the possibility of using military force to acquire Greenland and reduced tariff threats against European nations after reaching an initial agreement with NATO. While the specifics of this agreement remain unclear, Denmark has firmly rejected any discussions concerning the transfer of its territory to the US. Domestically, investors were anticipating the release of weekly jobless claims to gain new insights into the labor market. The Federal Reserve is widely anticipated to maintain current interest rates next week, although market predictions continue to suggest a potential 50 basis point reduction in rates later this year.