Greenland and green candles for yields

Global financial markets are witnessing sharp fluctuations amid rising geopolitical tensions between the United States and the European Union over the issue of 'Greenland.'

President Donald Trump insists on annexing the island to the United States under the pretext of 'national security,' which was met with outright rejection by the European Union. In this context, Trump announced the imposition of a 10% tariff on imports from eight European countries, including Sweden, Denmark, Norway, Finland, Germany, France, the United Kingdom, and the Netherlands, starting February 1, which would rise to 25% in June, in addition to imposing a 200% tariff on French alcohol imports, leading to escalating trade tensions between the two sides.

Moving to Japan, Japanese Prime Minister Sanae Takaichi has called for early elections, which could be held in the first week of February, based on opinion polls indicating the possibility of her securing a parliamentary majority. This move is seen as paving the way to strengthen expansionary fiscal policy through tax cuts, and increased spending to support the Japanese economy, which could lead to a widening fiscal deficit, and so Japanese Yields, across the curve, are soaring to the north.

High yields on Japanese treasuries put more pressure on EU and US treasuries as shown below for 20-year term. Will the role of the Yen as a funding currency come to an end?