Scott Bessent says U.S. is unconcerned by Treasury sell-off over Greenland, calls Denmark ‘irrelevant'

• Trump announced 20% tariffs on eight European countries effective Feb. 1, later rising to 25%, as part of his campaign to take over Greenland, which the U.S. considers a national security concern due to emerging Arctic trade routes
• Danish pension operator AkademikerPension sold $100 million in U.S. Treasurys citing 'poor U.S. government finances,' though Bessent stated the U.S. has had 'record foreign investment' in Treasurys
• Bessent claimed the sell-off narrative originated from a single Deutsche Bank analyst report that the bank's CEO later disavowed, calling media coverage 'fake news'

Summary

U.S. Treasury Secretary Scott Bessent dismissed concerns over foreign investors selling U.S. Treasuries amid escalating tensions over Greenland, calling Denmark's holdings "irrelevant." Speaking at the World Economic Forum in Davos on Wednesday, Bessent responded to a "sell America" trade that saw U.S. stocks and bonds decline on Tuesday.

Key Developments:

• Danish pension operator AkademikerPension announced it would sell $100 million in U.S. Treasuries, citing poor U.S. government finances
• President Trump threatened 20% tariffs on eight European countries over Greenland tensions, set to take effect February 1 and potentially rising to 25%
• Treasury bond prices fell while yields rose sharply on Tuesday

Bessent's Response:

The Treasury Secretary stated Denmark's Treasury investment is "less than $100 million" and noted Denmark has been selling Treasuries for years. He claimed the U.S. has seen "record foreign investment" in Treasuries and attributed sell-off concerns to a single Deutsche Bank analyst report, which he said the bank's CEO disavowed. Bessent suggested market volatility stemmed from a snap election announcement elsewhere, not European selling.

Strategic Context:

The Trump Administration views Greenland as a national security priority due to emerging Arctic trade routes and potential competition with Russia and China. Bessent referenced the U.S. purchase of the Virgin Islands from Denmark during World War I as historical precedent.

Market Implications:

European holdings in U.S. Treasuries have been declining, but Bessent's dismissive stance suggests the administration is unconcerned about potential foreign divestment, despite ongoing geopolitical tensions affecting global markets.