Trump’s Greenland Threat Reportedly Nudges Danish Pension Fund To Plan Exit From United States’ Treasuries: ‘The US Is Basically Not A Good Credit’

• In addition to Greenland threats, Schelde also cited fiscal discipline and a weakening U.S. dollar as reasons for the fund’s exit.
• According to data from the U.S. Treasury Department, the United States' current national debt is $38.45 trillion.
• For fiscal year 2026 to date, the national deficit stands at $602 billion.

Danish pension fund AkademikerPension reportedly plans to exit U.S. Treasuries by the end of January due to United States President Donald Trump’s threats over Greenland.

During an interview with Bloomberg, AkademikerPension’s Chief Investment Officer, Anders Schelde, said that the fund held about $100 million in U.S. Treasuries at the end of 2025.

“Things might get better and more calm a few months down the road, and Trump, he can’t be reelected, and the next president might be somewhat different,” Schelde said, while asking what will happen after five to ten years. “I think there’s a strong realization across Europe that we need to be able to stand on our own feet,” he added.

At the time of writing, the 10-Year Treasury yield was up by five basis points to 4.283%, while the 30-Year bond’s yield rose seven basis points to 4.918%.

Meanwhile, Mohamed El-Erian, Chief Economic Advisor at Allianz, warned in a post on X that one of the risks to U.S. government bonds as well as the dollar is that much of the world is “overweight” on them. “It’s in this context that headlines like the one below are not helpful even if this specific Danish fund’s Treasury holdings are minimal,” he said.

Beyond Greenland Threats

In addition to Greenland threats, Schelde also cited concerns about fiscal discipline and a weakening U.S. dollar as the reasons for the fund’s exit.

“The US is basically not a good credit and long-term the US government finances are not sustainable,” Schelde said in the interview.

According to data from the U.S. Treasury Department, the United States' current national debt is $38.45 trillion. For the fiscal year 2026 so far, the national deficit stands at $602 billion, decreasing from $711 billion in the comparable period of fiscal year 2025.

Trump’s Take

In a post on Truth Social on Saturday, President Trump said it is time for Denmark to “give back” to the U.S., after the U.S. subsidized the country and other European Union countries. He stated that the U.S. will levy a 10% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland from February 1, which will be ramped up to 25% from June 1.

“This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,” said President Trump.

Meanwhile, U.S. equities declined in Tuesday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 1.3%; the Invesco QQQ Trust ETF (QQQ) fell 1.26%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 1.32%.

The iShares 20+ Year Treasury Bond ETF (TLT) was down by 1.32% at the time of writing, while the iShares 7-10 Year Treasury Bond ETF (IEF) was down by 0.35%. Retail sentiment around the TLT ETF was in the ‘bullish’ territory.

Also See: Why Is CRVS Stock Rising Today?

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