Danish pension fund AkademikerPension will sell its United States Treasury holdings by the end of January, saying that United States government finances are in poor shape.
The move also comes as the U.S. escalates tensions with Denmark in its attempts to acquire Greenland. AkademikerPension has around US$100 million (A$148.5 million) in U.S. Treasurys.
“The decision is rooted in the poor U.S. government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management,” wrote AkademikerPension investment director Anders Schelde.
“Thus, it is not directly related to the ongoing rift between the U.S. and Europe, but of course that didn't make it more difficult to take the decision.”
AkademikerPension has DK164 billion kr. (US$25.8 billion) in assets under management. U.S. Treasury yields spiked during Tuesday trading (Wednesday AEDT).
While the U.S. budget deficit decreased by 2.2% in the 2025 fiscal year, it remains at $1.78 billion.
Moody’s lowered its credit rating for the U.S. by one rank from Aaa to Aa1 in May 2025. The spending bill it passed in July, formerly known as the One Big Beautiful Bill Act, is also set to add $3 trillion to government debts.
The U.S. has continued to pressure Denmark to allow it to purchase Greenland, meanwhile. U.S. President Donald Trump has said that European countries, including Denmark, France, and Germany, will face additional tariffs until the U.S. can buy Greenland.
Danish troops are conducting joint military exercises with other European NATO members in Greenland this week.
