Norway's $2.3 trillion sovereign wealth fund is considering reducing government bonds from 70% to 50% of its portfolio. Norges Bank Investment Management (NBIM) says the remaining bond allocation should provide exposure to broader fixed-income risk premiums (returns for taking bond-market risk), while Bloomberg estimates the change could reduce its US Treasury portfolio by $75 billion to $80 billion. The proposal comes as the US 10-year yield nears 4.8%, its highest since January 2025, and US public-debt interest payments exceed 3% of GDP after more than doubling in five years. Any allocation change requires parliamentary approval, and the fund has previously been rebuffed over private equity. Analysts and academics cited in the report also point to weaker diversification benefits from government bonds, heavy corporate borrowing by AI hyperscalers and widening fiscal pressures across advanced economies.