Norges Bank Investment Management, manager of Norway’s $2.3 trillion sovereign wealth fund, has proposed cutting government bonds to 50% of its fixed-income benchmark from 70%, reducing U.S. Treasury holdings by roughly $80 billion. The plan would lower the Treasury weighting to 21.9% from 34.1%; the fund held about $215 billion of the securities at the end of June 2026, making the proposed reduction about 37% of that position. Total sovereign-debt exposure would fall by an estimated $106 billion. NBIM would redirect capital toward non-government U.S. fixed-income assets, raising that allocation to 27.6% from 16.2% through agency mortgage-backed securities, corporate bonds and government-related debt. The fund’s dollar-denominated exposure would remain broadly stable at 52.5%, versus 52.9% currently. It also wants to replace GDP-based government-bond index weights with market-value weighting. Governor Ida Wolden Bache and NBIM CEO Nicolai Tangen said a 50% government-bond allocation would meet liquidity needs during market stress while allowing greater exposure to risk premiums. The proposal is subject to a decision by Norway’s political authorities, with an Expert Council review expected by January 2027 and parliamentary discussions planned for spring 2027. Any approved changes would be phased in gradually.