“Denmark’s investment in US Treasury bonds, like Denmark itself, is irrelevant,” Bessent said, adding, “They’ve been selling treasuries for years. I am not concerned at all”
US Treasury Secretary Scott Bessent on Wednesday dismissed concerns that Europe could exert pressure on Washington by selling US government bonds, saying Denmark was “irrelevant” and that he was unconcerned about any potential pullout from the Treasury market.
According to a Politico report, speaking to journalists in Davos, Bessent said Denmark’s holdings of US Treasuries were insignificant, adding that the country had been reducing its exposure for years.
“Denmark’s investment in US Treasury bonds, like Denmark itself, is irrelevant,” he said. “They’ve been selling treasuries for years. I am not concerned at all.”
His remarks came amid speculation that European governments and institutions could respond to US President Donald Trump’s threats to annex Greenland and impose new tariffs by divesting from US debt, potentially driving up borrowing costs.
On Tuesday, Danish pension fund AkademikerPension said it would sell its US Treasury holdings, citing Trump’s Greenland comments among several factors that had led it to reassess the United States’ credit standing.
The divestment debate was further fuelled by a weekend note from Deutsche Bank’s chief foreign exchange strategist, George Saravelos.
However, Bessent said Deutsche Bank Chief Executive Christian Sewing had contacted him to clarify that the views expressed did not reflect the bank’s official position.
Bessent added that the issue had been exaggerated by what he described as “the fake news media.”
US bond and stock markets tumbled sharply on Tuesday amid fears that the US-Europe rift over Greenland could reignite the trade war once feared in 2025.
Bessent said the selloff was further amplified by volatility in Japan’s bond market, where concerns over long-term debt sustainability resurfaced.
“I think it is very difficult to disaggregate any of the noise around Greenland,” he noted, adding that his Japanese counterpart had reassured him Tokyo would act to stabilize its market.
Earlier, Bessent criticised European leaders’ “inflammatory” comments on Greenland and slammed their plan to deploy troops there. “For those countries to activate their troops, I’m not sure what signal that is supposed to send,” he said. “It’s pretty quixotic.”
His remarks came just hours before a highly anticipated speech by President Trump, whose arrival in Davos was delayed by about three hours due to technical issues with Air Force One.
With inputs from agencies
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