Europe's Largest Pension Fund Cuts $10 Billion in U.S. Treasuries
ABP reduced its U.S. Treasury holdings by €10 billion amid concerns over Trump's tariffs and geopolitical tensions, signaling a shift in European investor sentiment.
Insights:
Europe's largest pension fund, ABP, has significantly reduced its holdings in U.S. Treasuries by approximately €10 billion between December 2024 and September 2025. This move reflects a growing caution among major European institutional investors regarding U.S. assets, driven by concerns over the policies of former President Donald Trump donald trumpand ongoing geopolitical tensions.
The Dutch pension fund, ABP, saw its U.S. Treasury holdings decline from €29 billion in December 2024 to approximately €19 billion by September 2025. This reduction signals a structural shift in European investor sentiment toward the safety and stability of U.S. assets, particularly as Trump's tariff threats have created uncertainty. The U.S. Treasury market, despite steady or rising prices during this period, experienced a notable reduction in holdings, indicating that ABP's decision was a strategic reallocation rather than a response to falling asset values.
