Treasuries joined a global bond selloff as US tariffs targeting Greenland sparked investor anxiety. The move reflects growing unease about Washington's fiscal position and its potential impact on American assets. Yields rose as traders reassessed risk premiums tied to geopolitical tensions.

The tariff threat adds to existing concerns about the US deficit and long-term debt sustainability. Historically, geopolitical friction has pressured safe-haven assets, with Treasury bonds losing their traditional appeal during periods of political uncertainty. Markets are now pricing in higher volatility.

Investors will watch for official statements from the US Trade Representative and any retaliatory measures. The episode underscores how trade policy can rapidly shift capital flows, forcing a re-evaluation of sovereign debt holdings in a fracturing global order.