Nordic Pension Funds Sell Off U.S. Treasuries in Unison: A Signal of Global Capital Reallocation

Recently, pension funds in Northern Europe have launched large-scale US debt liquidation operations, reflecting a global reassessment by institutional investors of U.S. debt risks. As some of the most cautious capital allocators worldwide, pension management agencies in Denmark, Sweden, the Netherlands, and other countries are demonstrating through concrete actions that US Treasuries are no longer synonymous with “risk-free assets.”

Nordic Countries Initiate US Debt Liquidation, Risk Signals Emerge

Pension funds in Northern Europe are known as the “global risk barometer” due to their high sensitivity to risk. These institutions have long considered US Treasuries as core assets, but their stance has now undergone a fundamental shift.

Denmark’s academic pension fund took the lead, publicly announcing that the U.S. financial situation is no longer sustainable, followed closely by Sweden. The Swedish pension fund even aggressively reduced its US debt holdings to nearly zero, setting a record over the past decade. Meanwhile, Dutch pension funds also significantly decreased their US debt exposure and increased holdings in German bonds as a risk hedge.

These capital outflows from Northern Europe are not isolated events but a microcosm of global institutional investors reevaluating dollar assets. Pension fund decision cycles are typically long, and their investment shifts often indicate a deep update in risk perception.

U.S. Debt Spiral: $38 Trillion Treasury Bonds Unsustainable

The U.S. debt dilemma has become an unavoidable structural issue. The latest data shows that the U.S. national debt has reached $38.4 trillion, with debt-to-GDP ratio exceeding 126%. Behind this figure lies a fiscal sustainability crisis for the federal government.

In fiscal year 2025, interest expenses alone will amount to $1.2 trillion, a huge cost that has already squeezed budgets for defense and other sectors. More concerning is that 19 cents of every dollar in tax revenue is used to pay debt interest. This structure traps the U.S. in a vicious cycle of “borrowing new debt to pay old debt.”

It is this debt crisis that has gradually revealed the risks of what was once considered a “safe haven”—US Treasuries. Based on such debt analysis, Northern European pension funds have made the decision to sell US debt holdings.

Reserve Currency Structure Shifts: The Era of Diversified Assets Begins

The dominance of the US dollar as the global reserve currency is weakening. Data shows that the dollar’s share in global foreign exchange reserves has fallen to 46%, while gold’s share has rapidly risen to 20%. This trend reflects central banks’ proactive adjustments to their reserve asset structures.

After the Greenland negotiations failed, the Trump administration threatened to raise tariffs on Northern European countries and even threatened financial sanctions against allies selling US debt. These measures have instead strengthened the global investor consensus: US policy predictability is declining, and political risks associated with US debt are rising.

As the foundation of dollar hegemony weakens, global capital is seeking more asset allocation options. The appeal of gold, euro bonds, and other alternative assets is increasing. This diversification trend marks the beginning of a new era—various institutional investors are no longer betting all their chips on a single currency system.

Global Capital Reallocation: Crypto Assets and New Opportunities

Against the backdrop of reshaping global reserve structures, various asset classes are seeking new positioning. When traditional safe-haven assets lose appeal, new asset types have the opportunity to attract attention.

Notably, some digital assets with growth potential are brewing opportunities. According to the latest market data:

• ENSO (Enso) Current price $1.31, 24h change -0.68%
• NOM (Nomina) Current price $0.01, 24h change +1.50%
• ZKC (Boundless) Current price $0.09, 24h change +3.37%

The US debt liquidation by Northern European pension funds marks a turning point in global institutional risk perception. Structurally, this is not only a response to the U.S. debt issue but also the beginning of a shift from reliance on a single asset class toward diversified global capital allocation. In this broader context, both traditional and emerging assets will face opportunities for reassessment and reallocation.