WASHINGTON (dpa-AFX) - Treasuries moved sharply lower during trading on Tuesday, extending the steep drop seen during last Friday's session.
Bond prices tumbled early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 6.4 basis points to 4.295 percent.
The ten-year yield added to the 7.1 basis point surge seen in the previous session, reaching its highest closing level in five months.
The continued slump by treasuries came amid renewed concerns about a trade war between the U.S. and Europe over President Donald Trump's efforts to take control of Greenland.
Trump has threatened to impose new tariffs on several European nations if they oppose his attempt to purchase the Danish territory, which he claims is imperative for national security.
In a post on Truth Social, Trump announced plans to impose a 10 percent tariff on imports from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland beginning February 1st.
Trump said the tariffs would be increased to 25 percent beginning June 1st and would remain in place until a deal is reached for the U.S. to purchase Greenland.
While treasuries often benefit from their appeal as a safe haven, the uproar over Greenland has led to worries about foreign governments and investors' appetite for U.S. assets.
Amid the rising tensions between the U.S. and Denmark, a report from CNBC said Danish pension operator AkademikerPension is exiting U.S. treasuries because of finance concerns.
'It is not directly related to the ongoing rift between the [U.S.] and Europe, but of course that didn't make it more difficult to take the decision,' Anders Schelde, AkademikerPension's investing chief, said in a statement to CNBC.
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