The Danish pension fund will sell $100 million worth of US government bonds

A Danish pension fund plans to sell its entire holdings of US government bonds – about $100 million – due to concerns about the financial stability of the US government.

AkademikerPension confirmed to CBS News that it will exit US Treasuries at the end of this month and will instead focus on the US dollar and short-term debt.

“The decision is rooted in the poor US public finances, which make us think that we must make efforts to find an alternative way to carry out our liquidity and risk management,” Anders Schelde, chief investment officer of AkademikerPension, told CBS News in a statement.

Moody’s ratings in May has downgraded the US credit rating from the highest level – Aaa – to Aa1, one step lower, citing rising government debt and increased policy uncertainty related to President Trump’s trade policies.

Denmark’s AkademikerPension, which offers pension plans for academics, has used U.S. government bonds as a source of liquidity for many years, Schelde said in his statement.

The move comes as President Trump steps up his pressure campaign to acquire Greenland. Schelde claimed on Tuesday that the company’s decision was “not directly related to the ongoing rift between the US and Europe”, adding: “but that of course did not make it more difficult to make the decision.”

The president has repeatedly said he wants that The US wants to take over the islanda territory of Denmark. He states that the takeover is necessary to ensure the security of the United States. and its allies, a claim that has drawn opposition from NATO.

This weekend, Trump said he would impose tariffs — starting at 10% in February and then rising to 25% in June — on eight major NATO trading partners until an agreement is reached “for the complete and total purchase of Greenland.” After the tariff announcement, made about Truth Social, US and European shares fell.

The US depends on foreign investment to help finance its debt. According to Deutsche Bank Research, European countries own $8 billion in U.S. bonds and stocks, almost double the amount of the rest of the world combined. According to the U.S. Treasury Department, the largest foreign holders of U.S. debt include Japan, Britain and China.

Treasury Secretary Scott Bessent denied on Tuesday that European countries would bail out U.S. government bonds during his speech at the World Economic Forum in Davos, Switzerland.

“I think it’s a completely false story,” he said. according to to the Guardian. “It defies logic, and I couldn’t disagree with it more strongly,” he added.

Edited by Aimee Picchi