Significant Reduction in US Treasury Holdings
According to the Dutch Financial Daily, ABP, the largest pension fund for civil servants in the Netherlands, reduced its holdings of US Treasury securities by nearly 40% over the first half of 2025. As of March 2025, the fund held around €30 billion (US$35.2 billion) in US government bonds, which dropped to €18.5 billion by the end of September.
This notable decrease has drawn widespread market attention, especially amid a broader trend of cautious positioning among global investors regarding US debt assets.
Shift to German Bonds: Strategic Realignment
At the same time, the fund increased its German government bond holdings from €18.6 billion to €28.7 billion, signaling a preference for core European assets.
- ABP considers a country’s economic fundamentals and outlook
- The term structure of government bonds is also a critical factor
- These elements help align investments with long-term pension liabilities
Macro Conditions Play Key Role
ABP emphasized that it continuously assesses national economic conditions and prospects to inform its investment decisions. This move reflects heightened global economic uncertainty and the impact of divergent monetary policies on the behavior of major institutional investors.