DoubleLine Briefing: Treasury Market Potential for Foreign Exits

TAMPA, Fla., Jan. 23, 2026 /PRNewswire/ -- With China systematically reducing its holdings of U.S. Treasury securities, the federal government and Treasury market can ill afford a wave of other large foreign sellers of U.S. debt, warns Bill Campbell, Portfolio Manager, Global Sovereign Debt, at DoubleLine Capital. The risk of such exits from the Treasury market, he writes, bears close vigilance by sovereign-debt allocators given today's geopolitical tensions.

The full briefing, "Treasury Market Potential for Foreign Exits," is available here: https://doubleline.com/wp-content/uploads/DoubleLine_US-Treasury-Market_Jan-2026.pdf

In Mr. Campbell's view, Danish pension fund AkademikerPension's decision, announced Jan. 20, to sell out of Treasuries by the end of the month is inconsequential in itself to this $30 trillion fixed income sector. However, the Danish example, he warns, "could presage similar disinvestment across the international institutional investor community. … Investors already are growing concerned about political and fiscal risk in developed market sovereign debt, as I warned in December and which became evident in the selloff of Japanese government bonds on Tuesday [Jan. 20]. Trade and geopolitical disputes can add catalysts for investors to act on these fundamental concerns."

The apparent thaw this week between President Donald Trump and European leaders over Greenland does not sound an "all-clear" in Mr. Campbell's eyes. "Last year, markets took a degree of comfort from the U.K., Japan and various EU nations reaching bilateral trade deals with the U.S. On Jan. 18, President Trump sent another shockwave through the international trade order when he posted on Truth Social the potential for additional tariffs on Denmark and seven other European countries until `a Deal is reached for the Complete and Total purchase of Greenland,' which is a self-governing autonomous territory within Denmark. Although Trump on Jan. 21 reversed the tariff threat, this episode has raised the risk that investors and corporations alike now view the trading relationship with the U.S. as more volatile than dependable if Washington is apt to return to tariffs as a negotiating tool for every disagreement that arises."

Mr. Campbell joined DoubleLine in 2013. He oversees the firm's Global Sovereign Debt team and serves as a Portfolio Manager of the DoubleLine Emerging Markets Local Currency and Global Bond strategies. He is a permanent member of the Fixed Income Asset Allocation Committee. He holds a B.S. in Business Economics and International Business, as well as a B.A. in English, from Pennsylvania State University. Mr. Campbell holds an M.A. in Mathematics, with a focus on Mathematical Finance, from Boston University.

About DoubleLine

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SOURCE DoubleLine