Investors Are Starting to Dump US Treasuries Citing TOO MUCH RISK

[Cat]

Don’t roll your eyes. Provide proof of your claim, Totally Fact-Free Alxuk.

Well.. Alxuk is not completely wrong, sadly:

(From Google AI)

• Interdependence: The U.S. and Europe have a high degree of financial interdependence, with Europeans holding substantially more U.S. assets (around $8 trillion in U.S. bonds and equities) than the U.S. holds in European assets.

 

[Rightguide]

Could Europe trigger a dollar collapse by selling U.S. assets? In this video, we break down a shift in global finance as a major Danish pension fund announces it will exit U.S. Treasuries, calling American finances “unsustainable.” This is not a fringe opinion — it’s a warning sign.

With European countries holding $3.6 TRILLION in U.S. Treasuries (40% of all foreign holdings), even a gradual selloff could send yields soaring, push U.S. borrowing costs to record levels, and destabilize global markets. Add Trump’s tariff threats, the Greenland dispute, a weakening dollar, and turmoil in Japan’s bond market — and the myth of U.S. Treasuries as a “risk-free” asset is cracking fast.

Is the U.S. losing its safe-haven status? Are we witnessing the early stages of a structural exit from dollar assets? Watch to understand what’s really happening — and why this moment matters for markets worldwide.

U.S. Treasuries are the deepest, most liquid bond market on Earth. Daily trading volume routinely exceeds $600–700 billion. Even if European holders reduced exposure, those bonds would not vanish, they would be absorbed by other buyers: U.S. institutions, pension funds, banks, insurance companies, the Federal Reserve, and non-European foreign holders. A selloff may raise yields modestly, but that is not a collapse. Higher yields often attract new buyers. Selling Treasuries does not destroy the dollar; it creates a buyer’s market.

There's nothing new about large deficits. Japan’s debt-to-GDP is far worse, yet JGBs remain stable. What matters is currency sovereignty, tax capacity, and growth, all of which the U.S. retains. The U.S. borrows in its own currency, controls monetary policy, and has unmatched military, legal, and capital-market infrastructure.

 

[Rightguide]

They have to at this point. Nobody trusts America right now. Not with this clown show running it.

BS.

 

[MajorRewrite]

Well.. Alxuk is not completely wrong, sadly:

(From Google AI)

• Interdependence: The U.S. and Europe have a high degree of financial interdependence, with Europeans holding substantially more U.S. assets (around $8 trillion in U.S. bonds and equities) than the U.S. holds in European assets.

EU debt is not held by the US government, which is what he claimed. Foreign debt purchased by private investors isn’t the same thing at all.

 

[Cat]

EU debt is not held by the US government, which is what he claimed. Foreign debt purchased by private investors isn’t the same thing at all.

Exactly!
And with the instability of the markets and the American dollar.
Why should the private investors sell out from their portfolio of stable bonds?

 

[Rightguide]

Unfortunately it does

MR is probably right. If you're considering the Federal Reserve, which is independent of the Treasury, and possibly holding limited foreign sovereign assets for technical reasons, this does not constitute fiscal ownership and does not contradict her core claim.

 

[Baztrachian]

The US government does not own public debt from EU countries.

Information is literally at your fingertips and still you choose not to avail yourself of it. Allow me:

US banks hold significant European debt, though exact figures fluctuate; recent reports show the EU and UK collectively hold trillions in US debt, creating potential leverage, while European entities (including banks and investors) hold substantial Eurozone government bonds, with non-residents owning around a quarter of it, highlighting mutual financial interdependence. US banks invest heavily in both US and foreign markets, including Eurozone sovereign bonds and corporate debt, with major European financial institutions also holding significant US assets, creating a complex web of ownership.
Key Points on US Holdings of European Debt (and vice versa):

• Mutual Holdings: It's not just Europe owning US debt; US banks and investors also hold substantial amounts of European sovereign (government) and corporate debt, especially in Euro-denominated assets.
• Eurozone Debt Ownership: Roughly a quarter of outstanding Euro area government debt is held by non-residents, which includes US entities.
• US Banks' Exposure: Major US financial institutions, such as JPMorgan, Goldman Sachs, and Citi, are significant players in European markets, holding various Euro-denominated securities.
• Recent Geopolitical Context: Geopolitical tensions (like trade disputes) have highlighted the potential for countries to reduce holdings of each other's assets, creating concerns about the stability of these holdings, say Deutsche Bank strategists.

To Find Specific Data:
For precise, real-time data on US banks' European debt holdings, you would need to consult detailed reports from:

• The Federal Reserve (e.g., Treasury International Capital (TIC) System reports)
• European Central Bank (ECB) statistics
• Bank for International Settlements (BIS) data
• Financial data providers like Bloomberg or Refinitiv

In summary, US banks have significant investments in European debt, just as European entities hold large amounts of US debt, forming a deeply interconnected financial system.

 

[Baztrachian]

EU debt is not held by the US government, which is what he claimed. Foreign debt purchased by private investors isn’t the same thing at all.

It rather is. The vast Federal government bureaucracy controls these investments via laws and regulations and if they decide private investors will shed their Euro bonds then that's what will happen.

 

[Hel_Books]

Hel_Books said:
So, Reagan and Thatcher and De Gaulle and Kohl won the Cold War and now Trump is throwing away that victory and looking to go back to 1948?

What do you get if you split Europe?

Hey with a sundowning authoritarian in the White House, who knows what will happen?

 

[Philthy_Phil]

The EU countries? Italy, Germany, France and 24 more

Not true. Stop lying, trumptard.

 

[Philthy_Phil]

Europe could destroy the US financially if pushed. The US is quickly turning into a paper tiger that loves pedophiles.

 

[Hel_Books]

There's nothing new about large deficits. Japan’s debt-to-GDP is far worse, yet JGBs remain stable. What matters is currency sovereignty, tax capacity, and growth, all of which the U.S. retains. The U.S. borrows in its own currency, controls monetary policy, and has unmatched military, legal, and capital-market infrastructure.

On the other hand, all we've seen from President Bonespur is sabotaging this, from ballooning the public debt to turning the courts into nests of partisan hacks to trashing the Federal Reserve. As for the military, remember, your Feerless Leeder has a thing about battleships, 19th century thinking for a 21st century drone and cyber arena.

 

[alxuk]

Not true. Stop lying, trumptard.

I am not the one with a MAGA cap

 

[Cat]

Europe could destroy the US financially if pushed. The US is quickly turning into a paper tiger that loves pedophiles.

We could. We do not want to.

But, the Danish pension funds have sold American treasuries for 13 billion Danish kroners.

Citing: Too much risk!

️ Eats

 

[MajorRewrite]

After his first comment, Baz realized he’d proved me right. So he quickly doubled down by pretending that government ownership and private ownership are the same thing.

Information is literally at your fingertips and still you choose not to avail yourself of it. Allow me:

US banks hold significant European debt, though exact figures fluctuate; recent reports show the EU and UK collectively hold trillions in US debt, creating potential leverage, while European entities (including banks and investors) hold substantial Eurozone government bonds, with non-residents owning around a quarter of it, highlighting mutual financial interdependence. US banks invest heavily in both US and foreign markets, including Eurozone sovereign bonds and corporate debt, with major European financial institutions also holding significant US assets, creating a complex web of ownership.
Key Points on US Holdings of European Debt (and vice versa):

• Mutual Holdings: It's not just Europe owning US debt; US banks and investors also hold substantial amounts of European sovereign (government) and corporate debt, especially in Euro-denominated assets.
• Eurozone Debt Ownership: Roughly a quarter of outstanding Euro area government debt is held by non-residents, which includes US entities.
• US Banks' Exposure: Major US financial institutions, such as JPMorgan, Goldman Sachs, and Citi, are significant players in European markets, holding various Euro-denominated securities.
• Recent Geopolitical Context: Geopolitical tensions (like trade disputes) have highlighted the potential for countries to reduce holdings of each other's assets, creating concerns about the stability of these holdings, say Deutsche Bank strategists.

To Find Specific Data:
For precise, real-time data on US banks' European debt holdings, you would need to consult detailed reports from:

• The Federal Reserve (e.g., Treasury International Capital (TIC) System reports)
• European Central Bank (ECB) statistics
• Bank for International Settlements (BIS) data
• Financial data providers like Bloomberg or Refinitiv

In summary, US banks have significant investments in European debt, just as European entities hold large amounts of US debt, forming a deeply interconnected financial system.

It rather is. The vast Federal government bureaucracy controls these investments via laws and regulations and if they decide private investors will shed their Euro bonds then that's what will happen.

cOnTroLs

 

[Lazaran]

After his first comment, Baz realized he’d proved me right. So he quickly doubled down by pretending that government ownership and private ownership are the same thing.





cOnTroLs

Fucking commie socialists…



We. Told. Them. So.

 

[ChloeTzang]

It doesn't matter who is elected after trump, the world has seen how quickly the US shit on all her allies and that Congress is useless. It will be generations before anyone sane does business with America again. Smaller countries are building new relationships and trading agreements with each other and leaving you guys out, as they should.

The latest example from today is Trump crapping n the Kurds in Syria.

No-one in their right minds would ever regard the US as an ally or a friend after this. It's look after numero uno, and don't trust a word the US says. YOu can see this in action now with Ukraine, where Zelensky is just playing alomg to mollify Trump as best he can until America sees sense and renders him powerless. The damage Trump has done internationallyis immense. It's looking more and more like China and Europe will align on their common interests and not matter how powerful our military, if our economy tanks, which with 38 trillion in debt, it will, we won't be able to afford it.

Instead if a new rennaisance and an American 21st century, Trump is engineering China into a position where they will be come THE world superpower.

 

[ChloeTzang]

As for US debt, this is going to be the equivalent of pass the parcel in and Irish pub - that debt bomb will go off amd the last ones out will take huge losses.....but how to bail witout triggering the collapse that you fear. Smaller debt holders are starting the move is what it looks like...... once the illusion of safety and stability is shattered, which Trump is doing very successfully, it becomes a race for the door.

 

[Chernosoth]

All of the national debts will default eventually. The world's debt is many times more than the world's assets. That is how global finance ends. Investors, bankers, stockbrokers, etc. will eat shit sandwiches, jump out of windows, etc. Governments will be forced to spend within their means or collapse and be replaced.

 

[icanhelp1]

I think that he does to some extent but you are right, his final goal is to break and divide Europe. The West under the USA influence and the East under the Russian one. Back to the 80s

I think Trump's plan is to destabilize the corrupt world bank.

 

[MajorRewrite]

I think Trump's plan is to destabilize the corrupt world bank.

tRuMp’S pLaN

 

[Buffalogurl]

In October 1979, a U.S. Treasury auction failed when the market refused the government's offered interest rate, forcing cancellation and a return with yields over 10 percent instead of the 9 percent the government hoped would suffice. The market, not the government, determined borrowing costs. Within two years, Treasury yields reached 15.8 percent and severe recession followed as the bond market imposed discipline.

This documentary reveals that the November 2025 20-year Treasury auction, while technically successful, showed composition patterns historically associated with weakening genuine demand. The bid-to-cover ratio fell to 2.24—the lowest for this maturity since 2020. More critically, indirect bidders (including foreign central banks) took only 62.1 percent versus the typical 70 percent, while primary dealers were forced to absorb 21.4 percent—the highest since March 2020 pandemic stress and 62 percent above the normal 13 percent.

We examine the mechanics: primary dealers are contractually required to bid but depend on distributing bonds to end investors. When dealers must warehouse $198 billion in inventory they cannot sell—up from $78 billion in 2021—it signals that genuine buying interest at prevailing yields has diminished. Foreign Treasury holdings have declined from 33 percent of total debt to 28 percent as China reduced holdings by 42 percent since 2013 and other central banks diversify away from dollar concentration.

The quantitative evidence shows the gap between $2 trillion annual government borrowing needs and approximately $1-1.5 trillion in identifiable private demand. Currently, primary dealers bridge this gap by warehousing bonds, but their balance sheet capacity is finite. Historical precedent from the 1979 auction failure, the 2022 UK gilt crisis, and the European sovereign debt crisis shows that when auction demand deteriorates, governments face a choice: accept market-clearing yields (potentially 5.5-6 percent for 10-year debt, adding $220+ billion annual interest expense), resume central bank intervention (risking renewed inflation), or face market dysfunction forcing policy capitulation.

This has been occurring all the way back into the Biden reign of terror it's not because of Trump
The reason is we are inflating the dollar and exporting that inflation, blame congress, for 50 years they have spent money we don't have.....
Oh, one more item, the collapse begins in Germany, the Japan....it'll take about two weeks before it steam rolls the US economy, we will be the hardest hit... don't believe me? Gold just hit 4800 an ounce....
Want to know more go read my postings in the economy thread...
Hint, (Deutsche bank is absolutely insolvent) Europe is absolutely bankrupt due to the social programs they have and the invasion of turd world heathens... the euro trash desperately needs to steal and plunder Russia's 73 trillion dollars of resources, hence the Ukrainian disaster..? Fuck Europe fuck NATO.......

 

[Chernosoth]

This is a time to carefully consider any large expenses. Someone who plans to stay in one suburban house forever could invest in house maintenance. Someone who might move to an urban apartment or another house later may figure this house is just temporary shelter and not worth large expenses. The collapse of the real estate market will probably make large numbers of vacancies, especially in the suburbs. Some houses may become boarding houses or shared living situations as expenses rise.

 

[ll74]

This has been occurring all the way back into the Biden reign of terror it's not because of Trump
The reason is we are inflating the dollar and exporting that inflation, blame congress, for 50 years they have spent money we don't have.....
Oh, one more item, the collapse begins in Germany, the Japan....it'll take about two weeks before it steam rolls the US economy, we will be the hardest hit... don't believe me? Gold just hit 4800 an ounce....
Want to know more go read my postings in the economy thread...
Hint, (Deutsche bank is absolutely insolvent) Europe is absolutely bankrupt due to the social programs they have and the invasion of turd world heathens... the euro trash desperately need to steal and plunder Russia's 73 trillion dollars of resources, hence the Ukrainian disaster..? Fuck Europe fuck NATO.......

What an idiot

 

[Cat]

What an idiot

I am trying to channel my inner zen spirit.. not that I have one whatsoever. But:
I cannot change people's mind. I cannot affect those that does not want to listen or see.

Instead of trying, I should watch the washing machine spin the laundry around, while drinking my cuppa.

That way, no idiot will ever be able to live rent free in my mind.

Some people need the attention and the chaos, they only thrive when there is strife and hate all over.

Give them nothing, and they will burn themselves out.