European Buyers Boost U.S. Treasury Holdings in 2025 Amid Geopolitical Tensions - Citi Data

European investors accounted for 80% of foreign purchases of U.S. Treasuries from April to November 2025, according to Citi portfolio data, countering speculation of a broad "sell America" trend despite rising geopolitical tensions. Foreign holdings of U.S. debt rose by approximately €301 billion during the period, with Europe contributing about €240 billion, pushing total foreign ownership to a record high, per U.S. Treasury data released January 18, 2026. While concerns have grown over potential asset divestment due to trade pressures and disputes involving Greenland, including tariff threats from former President Trump, actual outflows from European buyers remain limited. Citi noted that transaction data may overstate direct European ownership due to cross-border custody practices. However, some Nordic pension funds, including Sweden’s Alecta and Denmark’s AkademikerPension, have begun trimming U.S. Treasury positions. Market sentiment stabilized after Trump withdrew military and tariff threats. Citi’s Aman Bansal said no significant shift from U.S. to eurozone assets has occurred, as demand for both remains strong.