Some European pension funds have begun trimming their exposure to United States Treasury bonds amid growing uncertainty over U.S. fiscal policy and the global interest-rate outlook, according to recent market disclosures and reporting.
In Denmark, AkademikerPension confirmed it had reduced its holdings of U.S. government bonds by about $100 million as part of a broader review of sovereign risk and portfolio balance. The fund cited concerns about long-term U.S. debt sustainability and policy direction rather than any immediate market shock.
In Sweden, large pension investors, including government-linked funds, have also adjusted parts of their U.S. bond portfolios. These moves, according to fund managers and analysts, reflect reassessments of risk, currency exposure and returns, rather than coordinated political action.
The developments come at a time of heightened debate in Europe over transatlantic relations and global economic stability, particularly as the United States prepares for another election cycle and faces persistent budget deficits. Comments and policy positions associated with former U.S. President Donald Trump, who is seeking a return to office, have also added to investor caution, market analysts say.
Despite the recent adjustments by some funds, Europe remains one of the largest foreign holders of U.S. government debt. Market data show that European investors collectively hold U.S. Treasuries worth well over one trillion dollars, and buying activity has continued in various periods despite isolated sales.
Financial analysts note that pension funds routinely rebalance portfolios in response to changing economic conditions, interest-rate expectations and risk assessments. While geopolitical factors can influence sentiment, there has been no indication of a coordinated European Union policy to reduce U.S. debt holdings.
For now, the U.S. Treasury market continues to attract strong global demand, even as selective European investors reassess their exposure in an increasingly uncertain international environment.
Abuja Network News