Yields on Italy’s 10-year BTPs climbed toward 3.5%, their highest since January 6, as investors grappled with heightened geopolitical tensions and tumbling Japanese government bond prices. Markets remain focused on the fallout from US President Donald Trump’s repeated insistence that the US should control Greenland, coupled with his threat of tariffs on several European countries if a deal is not reached, and how Europe might respond. Further pressure came from the Japanese bond market, where Prime Minister Sanae Takaichi’s announcement of snap elections in February has rattled confidence in the country’s fiscal outlook.