Key Highlights
- We need to hear some of the same kinds of things.” The S&P 500 erased its 2026 gains on Tuesday and bonds and the dollar fell after Trump threatened tariffs on multiple European countries who have opposed his pressure to take over Greenland.
- The tumult came after Japan’s 40-year bond yield hit a record high on concerns that a snap election called by Prime Minister Sanae Takaichi might pave the way for looser government spending that exacerbates the nation’s finances.
- The 40-year bond rebounded on Wednesday after Finance Minister Satsuki Katayama called for calm among market participants.
- Trump is expected to arrive in Davos on Wednesday.
- Michele said global fixed-income buyers have no good alternatives to US debt markets, including government and corporates, given their depth and liquidity.
