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“Denmark’s funding in U.S. Treasury bonds, like Denmark itself, is irrelevant,” U.S. Treasury Secretary Scott Bessent advised reporters at Davos on Wednesday.
The “promote America” commerce was in full swing Tuesday after President Donald Trump and European leaders escalated tensions over Greenland. U.S. shares and bond costs tumbled, sending yields spiking.
It comes as Trump’s threats to impose 10% tariffs on eight European international locations as a part of his push to take over Greenland spooked markets. The levies would come into power on Feb. 1, Trump mentioned, and later rise to 25%.
Europe’s holdings in U.S. treasuries, nevertheless, have been tipped as a possible countermeasure.
Danish pension operator AkademikerPension mentioned Tuesday it was promoting $100 million in U.S. Treasurys. The choice was pushed by “poor [U.S.] authorities funds,” mentioned Anders Schelde, AkademikerPension’s investing chief.
When Bessent was requested how involved he’s about European buyers pulling out of treasuries, Bessent mentioned at a press convention on the World Financial Discussion board: “Denmark’s funding in U.S. Treasury bonds, like Denmark itself, is irrelevant.”
“That’s lower than $100 million. They have been promoting Treasuries for years, I am not involved in any respect.”
Bessent added that the U.S. has had “file international funding” in its Treasurys.
He steered that the Japanese bond sell-off following the announcement of a snap election within the island state, has “spilled over to different markets.”
The “notion that Europeans can be promoting U.S. belongings got here from a single analyst at Deutsche Financial institution,” Bessent mentioned, which was then amplified by “the faux information media.”
“The CEO of Deutsche Financial institution known as to say that Deutsche Financial institution doesn’t stand by that analyst report,” he added. CNBC has reached out to Deutsche Financial institution for remark.
The U.S. has deemed Greenland a nationwide safety concern because the Arctic warms and new commerce routes emerge, opening the ground for a possible energy play between the U.S., Russia and China. The Trump Administration has mentioned it desires to keep away from that battle.
“We’re asking our allies to grasp that Greenland must be a part of the USA,” Bessent advised reporters.
He added that U.S. purchased the U.S. Virgin Islands from Denmark through the First World Conflict as a result of they “understood” the islands’ significance.
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