Sweden’s largest private pension fund has divested up to $8.8 billion in US Treasuries, marking the most significant withdrawal yet from American government bonds since President Donald Trump’s Greenland crisis erupted.
Alecta, which manages retirement savings for 2.8 million Swedes and 37,000 companies, sold most of its US Treasury holdings since early 2025 citing “increased risk and unpredictability in US politics,” business daily Dagens Industri reported Wednesday. The sell-off totaled $7.7 billion to $8.8 billion.
The move dwarfs Tuesday’s announcement by Danish pension fund AkademikerPension, which plans to dump $100 million in US Treasuries by February 1. Together, the Nordic divestments signal growing unease among European investors about America’s fiscal stability under Trump.
“This is connected to the decreased predictability of US policy in combination with large budget deficits and a growing national debt,” Alecta Chief Investment Officer Pablo Bernengo told Bloomberg. The fund adopted “a staged approach” to trimming holdings over the past year, well before Trump’s Greenland threats triggered this week’s market turmoil.
Markets plunged on Tuesday after Trump refused to rule out military force to seize Greenland, with the S&P 500 falling 2.1% in its worst day since October. Trump reversed course Wednesday, announcing a tariff pause after meeting with NATO Secretary General Mark Rutte in Davos.
Read: Markets Plunge as Trump Presses Greenland Takeover, Denmark Dumps Treasuries
AkademikerPension emphasized its decision stemmed from concerns about US fiscal health rather than retaliation. “When the calendar says February 1st, there will be no US government bonds in our portfolio,” CEO Jens Schelde said, citing “weak public finances in the US.”
European countries collectively own about $8 trillion in US stocks and bonds, according to Deutsche Bank. The Nordic divestments represent a fraction of that total but carry symbolic weight as institutional investors question America’s creditworthiness.
US Treasury Secretary Scott Bessent dismissed concerns, calling Denmark’s investment “irrelevant.” However, Alecta’s disclosure, which came hours after Bessent’s comments, revealed selling 77 to 88 times larger than the Danish fund’s holdings.
The 10-year Treasury yield spiked to 4.293% Tuesday but remained below the panic levels seen in April 2025, when Trump’s “Liberation Day” tariffs triggered a bond market revolt. “It’s not really a problem until 4.50% and higher,” Tom Essaye, founder of the Sevens Report on markets, said. “If yields keep rising, that will become an increasing headwind on markets and the economy.”
The divestments come as Trump pursues an aggressive foreign policy agenda that has rattled traditional US allies. When pension funds managing retirement savings for millions begin treating US government bonds as too risky, it signals a fundamental shift in how the world assesses American reliability.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
8 Responses
It is happening now, first Denmark then Sweden and uk and eu and Canada start dumping american bonds . Not really good for anybody but will hurt amerikkka the most
Finally, good for them and good riddance. The world sees the ugly grimace of US propaganda in broad daylight – about time and more countries will be liberated from the toxic regime.
US mask came off to unveil the ugly grimace that has been assumed all along. I am happy they divested and set a strong signal of mass divestments that will follow in the coming years. It’s about time and good riddance. Glad they don’t give in to insecure dictators and embarrassing warmongers.
trump knows bankruptcies
They know The Running Man was fiction, right? Not an instruction manual..
Oh my god now the US will go broke. I don’t think they will miss thet pitance!
First and foremost. “thet pitance”? REALLY?! properly rendered by a intelligent speaker of English; that is more correctly parsed “that pittance”. Please take a seat until you can spell. Second, 8.8$ Billion USD is a substantial chunk of cash. I suspect the market will react negatively…and I am not stupid enough to believe that other European funds and investors will not follow suit. They have had their fill of our Dictator’s BS…and so have many Americans.
IF the other ‘significant’ holders of US treasuries like national provident funds divest of US securities (slowly of course; over a period of… weeks) then the US Gov is truly in trouble. Who will buy USD gov securities. Default is right around the corner.