Norway's Sovereign Wealth Fund Proposes Significant Cuts to US Treasury Holdings

The manager of Norway's $2.3 trillion sovereign wealth fund, Norges Bank Investment Management, has recommended a substantial reduction in its exposure to U.S. Treasuries. This is part of a broader restructuring of its bond investments aimed at improving returns. The proposal suggests cutting the weighting to government bonds within its benchmark bond index from 70% to 50%, with U.S. Treasuries, currently the largest holding, facing the biggest reduction. This move could see nearly $80 billion cut from its current U.S. Treasury holdings.