"At Davos this morning, Bessent was asked how concerned he was by the notion that European investors may start selling U.S. Treasuries in response to the White House's rhetoric over Greenland. The Treasury Secretary responded: "Denmark's investment in U.S. Treasury bonds, like Denmark itself, is irrelevant.""That is less than $100 million. They've been selling Treasuries for years, I'm not concerned at all," he added, per CNBC."
"U.S. bond yields have ticked steadily higher over the past week. Seven days ago, 10-year Treasuries stood at 4.14% and, at the time of writing, have sharply increased to 4.27%, signalling buyers are exiting the market, pushing up yields as a result. The increase can be seen even more acutely at the long end of the curve: 30-year Treasuries now sit at 4.9% (closing in on a crucial threshold of 5% yields) up from 4.78% only a few days ago."
"This is its 'Achilles Heel' wrote Deutshce Bank's Jim Reid this week, who added: "While in many ways it feels like the U.S. holds the economic cards, it doesn't hold all the funding cards in a world that will be very disturbed by the weekend's events." ING's Carsten Brzeski, global head of macro, and Bert Colijn, chief economist for the Netherlands made the same point, highlighting the $8 trillion Europe holds in U.S. debt"
Treasury Secretary Scott Bessent dismissed recent bond-market volatility and downplayed Denmark's Treasury holdings as negligible. U.S. Treasury yields have risen sharply in the past week, with 10-year yields moving from 4.14% to 4.27% and 30-year yields approaching 4.9%. Banks warned that foreign investors might use U.S. debt holdings as leverage in response to geopolitical tensions, citing roughly $8 trillion of U.S. debt held by Europe. Analysts described foreign reliance as a potential vulnerability to U.S. funding, suggesting geopolitical events could influence investor behavior and funding dynamics.
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