Trump's Greenland Deal Eases Trade Tensions, Boosts U.S. Treasury Rally (TSLA, JPM)

President Donald Trump announced on January 21, 2026, a "framework" agreement with NATO over Greenland, reversing planned tariffs on eight European countries and sparking a rebound in U.S. Treasuries. The 10-year Treasury yield fell 4 basis points to 4.25%, recovering from its highest level since August 2024. The move calmed bond markets previously strained by rising trade war fears, which had triggered foreign sell-offs and spillover pressure from plunging Japanese government bonds. Prior to Trump’s statement, robust demand at a 20-year Treasury auction provided early support. Traders who built futures long positions over the prior two sessions—resisting rising yields—benefited as aggregate risk exposure reached $12.5 million per basis point. JPMorgan data through January 20 showed client bullishness on Treasuries at its highest in over a month. Due to anonymous trading, specific participating institutions and final beneficiaries remain unconfirmed.