Commerzbank Analyst Flags Sanction Risk for Treasury Holders

An escalation in US-European tensions over President Donald Trump’s claim to Greenland increases the risk of sanctions that could impact US Treasury holders in the European Union, according to a Commerzbank AG analyst.

Sanctions on European nations would be a severe and unexpected step-up in the US’s economic foreign policy, with none threatened so far and officials still hopeful over a compromise. Yet the fact such measures are being floated by analysts shows how worsening trans-Atlantic relations are creating tail risks.