{"id":248791,"date":"2026-01-20T22:11:09","date_gmt":"2026-01-20T22:11:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/248791\/"},"modified":"2026-01-20T22:11:09","modified_gmt":"2026-01-20T22:11:09","slug":"markets-live-sell-america-trade-in-full-swing-as-trumps-greenland-threats-send-wall-street-and-us-dollar-lower","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/248791\/","title":{"rendered":"Markets live: ‘Sell America’ trade in full swing as Trump’s Greenland threats send Wall Street and US dollar lower"},"content":{"rendered":"

\u00a0The US dollar and Wall Street fell sharply overnight partly because of the “sell America” trade.<\/p>\n

Essentially, nervous investors sold down their US assets in response to Donald Trump’s threats to start a trade war against eight European countries over their opposition to his Greenland takeover plans.<\/p>\n

The other main reason was Japan’s bond sell-off, which led to borrowing costs hitting record highs for the Asian financial giant.<\/p>\n

You’re probably wondering: what has this got to do with anything? I’m getting to it!<\/p>\n

Japanese bond market sell-off<\/p>\n

For many years, global investors have been borrowing Japanese money (at very low interest rates) to purchase stocks and assets on other markets (ie. Wall Street).<\/p>\n

When Japanese rates climb, it usually leads to a big falls overseas. So, it was also a contributing factor to the weak performance of the US dollar and share market overnight.<\/p>\n

\"AThe Japanese government’s borrowing costs are surging. (LSEG, Reuters)<\/p>\n

Now the situation is that investors who lend money to the Japanese government are demanding much higher returns.<\/p>\n

The surge in Japan’s government bond yields coincides with Prime Minster Sanae Takaichi’s decision to call a snap election\u00a0on Monday.<\/p>\n

She’s running on a pro-stimulus platform, which means Japan will need to borrow a lot more money.<\/p>\n

The price of a bond and its yield (or return) move in opposite directions.<\/p>\n

So, when prices go down (because lots of people are selling), the yield needs to rise in order to incentivise people to purchase those bonds.<\/p>\n

Now with that background out of the way, Japan’s 10-year government bond yields have jumped almost 19 basis points in two days, their sharpest rise since 2022.<\/p>\n

Meanwhile, its 30-year yields rose 28 basis points overnight.<\/p>\n

That’s the equivalent of one interest rate hike in a single day \u2014 and the biggest daily jump since 2003 as investors are bracing for increased government spending.<\/p>\n

At 3.883%, Japan’s 30-year yield has surged to its highest level ever.<\/p>\n

“If there is a strong mandate following the election, that could open the door to more fiscal spending,” said Seema Shah, chief global strategist at Principal Asset Management. <\/p>\n

“It pulls a lot of global bond markets into a difficult story about debt and you can see that in the rise in borrowing costs.”<\/p>\n","protected":false},"excerpt":{"rendered":"\u00a0The US dollar and Wall Street fell sharply overnight partly because of the “sell America” trade. Essentially, nervous…\n","protected":false},"author":2,"featured_media":248792,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[11466,19594,114,2288,3151,184,1247,85,46,190,2378,5839,19593,1010,19595,196],"class_list":["post-248791","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-asx","tag-aud","tag-business","tag-dollar","tag-dow-jones","tag-economy","tag-gold","tag-il","tag-israel","tag-markets","tag-nasdaq","tag-oil","tag-sp","tag-sp-500","tag-usd","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/248791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=248791"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/248791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/248792"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=248791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=248791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=248791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}