🚨 US-Europe Bond Tensions Escalate: Crisis Ahead?

A Danish pension fund recently divested $100 million in US bonds. President Trump promptly responded, asserting he "holds all the cards" and cautioning Europe against targeting US assets over tariffs, threatening "big retaliation."

However, Europe did not yield. A Swedish pension fund followed suit, divesting $8.8 billion in US Treasury bonds, a move that has sent significant ripples through global markets.

Analysts suggest this might not be an isolated incident. A wider sell-off could commence, particularly given President Trump's ongoing threats of tariffs and retaliatory measures.

With over $38 trillion in US national debt, coupled with rising interest rates and broader global uncertainty, even seemingly minor shifts like these can ignite substantial volatility across the dollar, Treasuries, and equity markets.

Should this situation intensify, US bondholders could face considerable losses. Global investors might reconsider their reliance on the dollar, potentially challenging its long-standing dominance worldwide. The international community is closely observing these developments, as the next steps could lead to extreme market turbulence. 🌍💣