Scott Bessent ‘not concerned’ by sell-off: Denmark is irrelevant
“Denmark’s investment in US Treasury securities is irrelevant, as is Denmark itself,” US Treasury Secretary Scott Bessent told reporters in Davos on Wednesday. he said.
The “sell America” trade was in full swing on Tuesday after President Donald Trump and European leaders ratcheted up tensions over Greenland. US stock and bond prices fell and yields rose.
This comes as Trump threatens to impose 10% tariffs on eight European countries as part of his push to take over markets in Greenland. Trump said the taxes would go into effect on February 1 and then increase to 25%.
But Europe’s holdings in US treasuries have been suggested as a potential countermeasure.
Danish pension operator AcademicianRetirement He said he sold $100 million in U.S. Treasury bonds on Tuesday. The decision was taken by the “poor” [U.S.] government finances,” said Anders Schelde, AkademikerPension’s chief investment officer.
When Bessent was asked how concerned he was about European investors withdrawing from treasury bonds, Bessent told a press conference at the World Economic Forum: “Denmark’s investment in US Treasuries is irrelevant, as is Denmark itself.”
“That’s less than $100 million. They’ve been selling Treasury bonds for years, I’m not worried at all.”
Bessent added that there is “record foreign investment” in the US Treasury.
He claimed that the sales in Japanese bonds “spread to other markets” after the announcement of early elections in the island state.
Bessent said the “idea that Europeans would sell U.S. assets came from a single analyst at Deutsche Bank,” an idea that was later amplified by the “fake news media.”
“The CEO of Deutsche Bank called to say that Deutsche Bank does not stand by this analyst report,” he added. CNBC has reached out to Deutsche Bank for comment.
The United States views Greenland as a national security concern due to the warming of the Arctic and the emergence of new trade routes, paving the way for a potential power play between the United States, Russia and China. The Trump Administration has said it wants to avoid this conflict.
“We want our allies to understand that Greenland should be part of the United States,” Bessent told reporters. he said.
He added that the United States purchased the U.S. Virgin Islands from Denmark during World War I because they “understood” the importance of the islands.
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