“AkademikerPension will sell its full holdings of US Treasury bonds, citing political risk and currency considerations.”
Pension funds are the most boring institutional investors on earth. When a Danish pension fund decides US Treasuries are too risky, that is not an isolated decision. That is the canary. Norwegian, Dutch, and German funds run on the same risk models and the same political analysis. The dollar’s status as the global reserve asset is a function of consensus. The consensus is fraying.