Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Nov. 20, 2025.
Brendan McDermid | Reuters
The benchmark 10-year Treasury yield fell on Wednesday, as concerns around the “sell America” trade ignited in the previous session were eased following new comments from President Donald Trump.
The yield on the 10-year Treasury was down more than 4 basis points at 4.251% — it topped 4.3% at the high of the day on Tuesday. The 30-year Treasury bond was more than 5 basis points lower at 4.87%, while the 2-year Treasury note yield dipped less than a basis point at 3.591%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Trump said Wednesday afternoon that he reached a Greenland deal “framework” with NATO and would not impose tariffs on several European countries that were scheduled to take effect next month.
“This solution, if consummated, will be a great one for the United States of America, and all NATO Nations. Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st,” Trump said in a Truth Social post.
The move comes after the president on Saturday threatened tariffs against eight European allies, with the levies starting at 10% on Feb. 1 and rising to 25% on June 1, as Washington continued to insist on reaching a deal to “buy” Greenland, an independent territory in the Kingdom of Denmark.
The planned duties raised fears about a “sell America” trade, which could see investors place a higher risk premium on U.S. investments and even dump U.S. assets because it’s no longer seen as a reliable trading partner. That trade unwound Wednesday.
“Markets have likely had their fill of tariff escalations, and de-escalations, by this point,” said Tom Garretson, senior portfolio strategist at RBC Wealth Management.
Earlier Wednesday, the 10-year yield first moved lower following Trump saying in his speech at the World Economic Forum in Davos, Switzerland, that he was “seeking immediate negotiations” with Denmark to “discuss the acquisition of Greenland by the United States.” He added, though, that he would not use military force in his pursuit.
