Bessent Dismisses Denmark Amid Bond Sell-Off

Treasury Secretary Scott Bessent said Wednesday at the World Economic Forum in Davos that "Denmark's investment in U.S. Treasury bonds — like Denmark itself — is irrelevant," dismissing AkademikerPension's decision to sell about $100 million in U.S. Treasuries and saying he was not concerned.

AkademikerPension announced Tuesday it would divest roughly $100 million in U.S. Treasury bonds, citing "poor government finances," a move that followed President Donald Trump's public discussion of acquiring Greenland and threats of new tariffs that have heightened U.S.-Europe tensions.

Bessent said a "single analyst at Deutsche Bank" sparked fears Europe would sell U.S. assets and claimed the Deutsche Bank CEO called to repudiate the analyst, a claim a Deutsche Bank spokesperson declined to confirm or deny and Treasury officials described as overstated.

Treasury officials and market data show the $100 million sale represents a tiny fraction of the $30.8 trillion U.S. Treasury market, while Denmark's holdings have fallen to just under $10 billion from just under $18 billion in 2021 and the European Union collectively owns about $8 trillion.

Markets sold off sharply on Tuesday amid the dispute and warnings from a Deutsche Bank analyst that the rift could prompt EU divestment, and Bessent urged European leaders to "take a deep breath" as Davos diplomacy and Treasury monitoring of foreign demand continue this week.