U.S. 30-year Treasury yield jumps 9 basis points as trade war fears reignite

U.S. Treasury yields jumped connected Tuesday arsenic investors weighed renewed tariff threats from Washington that revived fears of a commercialized warfare with Europe.

Yields connected the benchmark 10-year Treasury were past seen trading astir 6 ground points higher astatine 4.287%. Yields connected longer-dated 20- and 30-year Treasurys spiked, adding 9 ground points to commercialized astatine astir 4.885% and 4.93%, respectively.

One ground constituent is adjacent to 0.01%, and yields and prices determination successful other directions.

Trump announced connected Saturday that eight European allies would look expanding tariffs, starting astatine 10% connected Feb. 1 and rising to 25% connected June 1, if a woody is not reached that allows Washington to "buy" Greenland, a semi-autonomous Danish territory. The tariffs would perchance people Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, Trump said.

On Tuesday, Trump also threatened to slap 200% tariffs connected French vino and champagne aft France's President Emmanuel Macron was reported to beryllium unwilling to articulation his "Board of Peace" connected Gaza.

European leaders have described Trump's caller tariff threats arsenic "unacceptable," and are reportedly considering countermeasures — with France said to beryllium pushing for the European Union to usage its strongest economical counter-threat, known arsenic the "Anti-Coercion Instrument."

Trump besides took purpose astatine different NATO ally up of his quality astatine the World Economic Forum successful Davos this week, lashing retired astatine London's determination to transportation sovereignty of the Chagos Islands to Mauritius. The islands see Diego Garcia, location to a associated U.S.-U.K. subject base. The Trump administration previously backed the U.K.'s woody with Mauritius.

The enslaved marketplace was closed connected Monday for Martin Luther King Day.

— CNBC's Holly Ellyatt contributed to this article.