Spanish government bonds, which had already been under pressure, sold off further after President Trump said at the NATO summit in Turkey that he wanted to cut off all trade with Spain.

Comments Made at NATO Summit

The remarks came during meetings in Ankara alongside Turkish President Tayyip Erdogan, as world leaders gathered for the alliance’s summit amid separate tensions over defense spending commitments.

Bonds Already Under Pressure

Spanish debt had been selling off in the period leading up to the comments, and Trump’s remarks appeared to accelerate the move, adding a fresh source of uncertainty for European fixed-income investors.

Part of a Volatile Week for Trump Headlines

The Spain comments came during the same appearances where Trump also declared the U.S.-Iran ceasefire “over,” contributing to a broader day of volatility across equities, oil, and bonds.

What Investors Are Watching

Markets will be watching for any follow-through on trade actions against Spain, along with broader NATO-related developments that could affect European asset prices in the weeks ahead.