European Investors Flock to U.S. Treasuries in 2025, Data Reveals
Recent data indicates a significant trend in European investment in U.S. Treasuries as of 2025. A report from Citi highlights that European investors accounted for 80% of foreign purchases of U.S. Treasuries from April to November of the previous year. This influx occurred amid market uncertainties, suggesting a strong preference for U.S. debt despite ongoing geopolitical tensions.
Strong European Interest in U.S. Treasuries
Between April and November last year, European investors purchased an impressive 240 billion euros, equating to approximately $280.85 billion, in U.S. Treasuries. This contributed to a total increase of 301 billion euros in foreign holdings of these securities. The data suggests that, contrary to fears of a ‘Sell America’ trend, European investors actively participated in U.S. Treasury markets.
Impacts of Geopolitical Events
Select comments from analysts reflect concerns about U.S.-European relations. The announcement of “Liberation Day” tariffs by then President Donald Trump in April marked a turning point, raising questions about the safety of U.S. assets. Subsequently, Trump’s threats to raise tariffs on certain European countries and his aggressive trade policies further fueled apprehensions.
Nordic Pension Funds Adjust Holdings
In contrast to the overall trend, some Nordic pension funds have opted to reduce their U.S. Treasury holdings. For instance, Sweden’s Alecta reported a significant divestment from U.S. Treasuries over the past year. Similarly, Denmark’s AkademikerPension announced plans to divest by the end of the current month.
Current Market Sentiment
Following recent geopolitical developments, including Trump’s decision to drop aggressive tariff threats, market conditions appear to have stabilized. Analysts suggest that despite fluctuations, investor focus remains on the implications of the ‘Sell America’ narrative. This context may shape future European investment decisions regarding U.S. Treasuries.
U.S. versus Eurozone Debt Appeal
Data from the European Central Bank shows an uptick in foreign purchasing of euro zone debt alongside sustained interest in U.S. Treasuries. This dual interest suggests an evolving landscape where both U.S. and European fixed-income markets vie for global investor attention.
Conclusion
As of 2025, European investors continue to demonstrate an appetite for U.S. Treasuries, contradicting some expectations of a sell-off. Future developments in U.S.-European relations and global market dynamics will be pivotal in shaping these investment trends. Investors and analysts alike will be closely monitoring the situation for indications of changing tides.
