Denmark pension fund to sell off S$128 million in US Treasury bonds due to 'poor US govt finances'

A Danish pension fund has decided to sell off its entire U.S. Treasury holdings over concerns of "poor U.S. government finances", CBS reported on Jan. 21.

This decision is apparently unrelated to the recent demand by U.S. President Donald Trump to acquire the Danish territory of Greenland, either financially or otherwise.

Anders Schelde, chief investment officer of AkademikerPension, told CBS that the decision is based on the U.S. government's poor finances, and it is considering alternative ways to handle its liquidity and risk management.

The value of the fund's holdings in U.S. Treasury bonds amounts to US$100 million (S$128 million).

While AkademikerPension denied that Trump's determined effort to annex Greenland was directly related to its decision, it added that it didn't make its decision more difficult.

Uncertain economy

In addition to placing tariffs on key U.S. trade partners like China, allies like Japan and neighbours like Canada, Trump's Big Beautiful Bill also made permanent extensive tax cuts, worsening the U.S. government's debt.

In May 2025, credit ratings agency Moody's downgraded the U.S. credit rating from the top AAA grade to AA1.

The U.S. government uses foreign investment in bonds to help service its debt. Several foreign governments own such bonds, including the UK, China and Japan.

European countries own US$8 trillion (S$10.3 trillion) worth of U.S. bonds and equities, according to FT, and they may leverage this in the escalating situation over Greenland.

Trump has threatened to slap punitive tariffs of 10 to 25 per cent on goods from Europe unless a deal is reached over Greenland.

However, European leaders like EU Commission President Ursula von der Leyen, and French President Emmanuel Macron have strongly rejected the Trump push to obtain the Danish territory.

Top image from Pixabay.