Norway fund proposes cutting government-bond allocation and $80 billion Treasury exposure

Sep 7, 2026 05:00 (48d ago)

Norway’s sovereign wealth fund proposed reducing government bonds from 70% to 50% of its portfolio.
The change could reduce its U.S. Treasury holdings by an estimated $75 billion to $80 billion, with a gradual reduction potentially beginning in 2027.
The proposal comes as foreign investors favor U.S. equities over fixed income and Treasury ownership declines amid fiscal and debt-market concerns.

Norway’s $2.3 trillion Government Pension Fund Global, the world’s largest sovereign wealth fund, has proposed reducing government bonds from 70% to 50% of its portfolio and gradually cutting its roughly $75 billion to $80 billion exposure to U.S. Treasurys, potentially from 2027. Norges Bank Investment Management says the remaining bond allocation should provide exposure to broader fixed-income risk premiums, while the proposal requires parliamentary approval. The plan comes as investors reassess long-duration government debt amid higher yields, rising issuance, inflation concerns and persistent fiscal deficits; Deutsche Bank said foreign investors’ U.S. equity inflows had exceeded fixed-income inflows for the first time outside the global financial crisis.