De Nederlandsche Bank (DNB) published new statistics showing a EUR 23 billion fall in the value of Dutch institutions’ holdings of foreign government bonds in the first half of 2025, with losses mainly concentrated in European sovereigns as interest rates rose. Total holdings stood at EUR 531 billion at end-June 2025, down from EUR 536 billion at end-2024. The EUR 23 billion valuation decline reflected price and exchange rate effects, partly offset by EUR 18 billion of purchases of sovereign debt during the period, led by German government bonds (EUR 11.5 billion), followed by Spanish (EUR 1.7 billion) and Indian (EUR 1.7 billion) paper. The largest value declines were in bonds issued by Germany (EUR 5.4 billion), France (EUR 2.4 billion) and Austria (EUR 1.6 billion), with French and German bonds together making up around one-third of Dutch institutions’ foreign sovereign holdings. Non-European bonds recorded some valuation gains, led by the United States (EUR 1.8 billion), but DNB estimates non-European government bonds still incurred a EUR 14 billion loss from currency fluctuations; the release notes that currency risk can be hedged using derivatives.
De Nederlandsche Bank 2025-09-23
De Nederlandsche Bank figures show Dutch institutions lost EUR 23bn on foreign government bonds in H1 2025
De Nederlandsche Bank reported a EUR 23 billion decline in Dutch institutions' foreign government bond holdings in H1 2025, mainly due to rising interest rates affecting European sovereigns. Despite EUR 18 billion in sovereign debt purchases, including EUR 11.5 billion in German bonds, significant value declines were noted in German, French, and Austrian bonds. Non-European bonds saw some gains, notably from the U.S., but overall incurred a EUR 14 billion loss from currency fluctuations.