Bonds & Stocks
Equities extended their selloff as the standoff between the US and Europe over control of Greenland showed no sign of de-escalation, while heavy selling in Japanese debt rippled through global bond markets. A 1.6% slump in S&P 500 futures from Friday’s close left the benchmark poised to wipe out year-to-date gains.
Economy
Treasury Secretary Scott Bessent said he had spoken with his Japanese counterpart amid a selloff in Japan’s government bonds that he said had fed through to affect the Treasuries market. “I’ve been in touch with my economic counterpart in Japan, and I am sure that they will begin saying the things that will calm the market down.”
World
Borrowers ventured back into Europe’s marketplace for debt on Tuesday, though some companies are still staying away amid tensions with the US over Greenland. Around 10 issuers are looking to raise at least €36.7 billion ($43 billion), a total propped up by two bumper sovereign offerings from Spain and the UK.